Conspiracy Charge Filed Against Former Trader
According to the FBI, a former trader for ConvergEx Global Markets Ltd. — a former securities broker-dealer registered in Bermuda — has been charged in New Jersey with conspiracy to commit wire fraud.
47-year-old Craig Marshall — who the FBI said was based in Bermuda — was charged under seal by criminal complaint on May 27, 2014, and he made his initial appearance on June 4th.
Jonathan Daspin, a former Bermuda resident who served as the head trader, and Thomas Lekargeren have already pleaded guilty to conspiracy to commit securities and wire fraud.
According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up [an additional amount paid for the purchase of a security] or mark-down [a reduction of the amount received for the sale of a security] when executing the orders.
The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on August 11, 2009.
Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York, and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed, and the price at which shares were either purchased or sold.
After sending certain clients these false reports, the conspirators are alleged to have taken a total of $5,171,394 in spread from them.
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Another blow to Bermudas reputation while being lead by the former Government (in 2007) then the Progressive Labour Party… Where were your “watchdog” then Mr. Marc Bean?
I’m positive, “there are many more wolves dressed in sheep clothing”. This was and still is unacceptable, (for our Island in particular) to be known as or associated with in “any-which-way”:-( More work for the One Bermuda Alliance to clean up…By the way, thanks to all O.B.A. Govt. workers that aided the F.B.I. in catching them thieves!
Register for the Financial Crime Seminar in October and learn how to mitigate these sort of risks. http://www.ycseminars.com