Whistleblower News From The Inside -- September 29, 2017

By the C|C Whistleblower Lawyer Team

The Federal Reserve fined HSBC $175 million over Forex – The Federal Reserve fined HSBC Holdings PLC $175 million for “unsafe and unsound practices” in its foreign exchange trading business. HSBC failed to monitor chatrooms where traders swapped information about investment positions, the U.S. central bank said. “The board levied the fine for deficiencies in HSBC’s oversight of and internal controls over FX traders,” the Fed said in a statement. This week, Mark Johnson, the former head of HSBC’s global foreign exchange cash trading desk, went on trial for his alleged role in improper trades. Reuters

SEC Detects Brokers Defrauding Customers – The SEC charged three New York-based brokers with making unsuitable recommendations that resulted in substantial losses to customers and hefty commissions for the brokers. Brokers must make recommendations that are compatible with their customers’ financial needs, investment objectives, and risk tolerances.  An SEC examination of the firm Alexander Capital L.P. detected potential misconduct among certain brokers, and the ensuing investigation has led to the filing of an SEC complaint against William C. Gennity and Rocco Roveccio. According to the SEC’s complaint, customer losses totaled $683,038 while Gennity and Roveccio received approximately $280,000 and $206,000, respectively, in commissions and fees. SEC

Kevin Costner Settles $4 Million Suit Over China Film Festival Fraud – Kevin Costner has reached a settlement with a Chinese financier who fired him from the film “Shanghai Sojourners” last year. Costner sued Kylin Pictures in October 2016, alleging that the company breached its agreement. Costner was hired in April 2016 to produce the film, a historical romance set during the Japanese occupation of China. According to the suit, Kylin used Costner’s involvement to attract investors at the Shanghai International Film Festival, only to fire him two months later.