Ex-Barclays Forex Trader Pleads Guilty In Long-Running U.S. Probe

By Aruna Viswanatha 

WASHINGTON -- A former foreign-exchange trader at Barclays PLC pleaded guilty Wednesday to conspiring to manipulate currency rates, the first individual publicly charged in an investigation over collusion at top global banks to move the rates.

Jason Katz, who worked on the New York foreign-exchange desk at Barclays and two other banks, admitted to working between 2007 and 2013 with dealers at other institutions to fix prices for currencies in central and eastern Europe, the Middle East, and Africa, the Justice Department said.

A lawyer for Mr. Katz couldn't immediately be reached for comment.

The efforts included coordinating bids and offers, and agreeing to quote certain prices to specific customers, the agency said.

Five banks including Barclays pleaded guilty in May 2015 and paid $5.6 billion in penalties to resolve investigations into whether the banks worked together to manipulate foreign currency prices.

In a separate case that grew out of the investigations, prosecutors in July charged two HSBC Holdings PLC employees with fraudulently front-running a $3.5 billion currency trade for a client. The HSBC traders have pleaded not guilty.

According to a plea agreement entered in Manhattan federal court on Wednesday, Mr. Katz agreed to cooperate in the ongoing investigation. He faces up to 10 years in prison.

The Federal Reserve separately on Wednesday announced it permanently prohibited Mr. Katz from working in the banking industry.

Write to Aruna Viswanatha at [e-mail]

(END) Dow Jones Newswires

January 04, 2017 18:57 ET (23:57 GMT)

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