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HSBC to pay $101.5M in front-running scheme case

Jaclyn Jaeger | January 29, 2018

U.K.-based global financial services company HSBC Holdings will pay a total of $101.5 million, including a $63.1 million criminal penalty and $38.4 million in disgorgement and restitution, to resolve charges that it engaged in a scheme to defraud two bank clients through a multi-million dollar scheme commonly referred to as “front-running.”

The payment reflects a 15% reduction in the fine amount in recognition of HSBC’s cooperation during the investigation and its extensive remediation. The bank also entered into a three-year deferred prosecution agreement (DPA), filed in connection with a two-count criminal information charging wire fraud in the U.S. District Court for the Eastern District of New York. The DPA is pending review by the court.   

“HSBC’s admissions in connection with this resolution confirm that the company misused confidential client information for its own profit on more...

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