A former high-ranking official at Barclays Capital Inc. has been charged with orchestrating a multimillion-dollar front-running scheme in California.
Robert Bogucki, 45, of East Setauket, New York, allegedly misused confidential information provided by Hewlett-Packard Company (HP) to manipulate the price of foreign exchange options in advance of a large trade in 2011.
The indictment, filed in the Northern District of California on January 16, 2019, charges Bogucki with one count of conspiracy to commit wire fraud and six counts of wire fraud.
According to the indictment, in September and October 2011, Bogucki misused information provided by HP, which had hired Barclays to execute a foreign exchange transaction related to the planned acquisition of a UK-based company.
Barclays was selected to execute the foreign exchange transaction – which required the sale of 6 billion British pounds worth of options – in September 2011.
The defendant and other Barclays employees assured HP and its employees that they understood the need to keep the planned transaction, which was exceptionally large, and therefore “market-moving,” confidential.
Instead, Bogucki and other Barclays employees allegedly used the confidential information they received to manipulate the price of “volatility,” a metric that affects the value of foreign exchange options.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
On March 4, 2019, Senior U.S. District Court Judge Charles Roberts Breyer granted the Rule 29 motion and granted an acquittal. Mr. Bogucki was acquitted on all charges.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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