Criminal cartel charges laid against ANZ, Deutsche Bank and Citigroup
A STRING of the nation’s most senior bankers — including ANZ’s group treasurer and the former chief of the local arm of Citigroup — face 10 years in jail after being charged with criminal cartel offences.
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A STRING of the nation’s most senior bankers, including ANZ’s group treasurer and the former country heads of Citigroup and Deutsche Bank, face 10 years in jail after being charged with criminal cartel offences.
Banking giants ANZ, Citigroup and Deutsche Bank and a six of their current and former senior executives — three from Citi, two from Deutsche and one from ANZ — have been hit with criminal cartel charges following a probe by the competition watchdog.
The charges were announced by the Australian Competition and Consumer Commission late Tuesday and laid by the Commonwealth Director of Public Prosecutions.
ANZ, CITI AND DEUTSCHE BANK TO FACE CHARGES
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They relate to a $2.5 billion issue of new shares in ANZ carried out in 2015.
The latest bombshell to hit banking sector follows Commonwealth Bank agreeing to pay the largest civil fine in the nation’s history after admitting to breaching anti-money laundering laws more than 53,000 times and comes amid a royal commission into the finance sector.
Bankers to be targeted in the criminal cartel case include Citigroup Australia’s former chief executive Stephen Roberts and its current Australian capital markets origination head John McLean and global head of foreign exchange Itay Tuchman.
Deutsche’s former head of Australia Michael Ormaechea and its former head of Australian equity capital markets Michael Richardson have been charged as has ANZ group treasurer Rick Moscati.
“The charges involve alleged cartel arrangements relating to trading in ANZ shares held by Deutsche Bank and Citigroup,” a statement from ACCC said.
“ANZ and each of the individuals are alleged to have been knowingly concerned in some or all of the alleged conduct.”
ACCC chairman Rod Sims said the “serious charges” were the result of investigation by the competition watchdog the that has been running for more than two years.
“Charges have now been laid by the Commonwealth Director of Public Prosecutions and the matter will be determined by the court,” Mr Sims said on Tuesday.
The matter is listed before the Downing Centre Local Court in Sydney on 3 July.
Individuals found guilty of criminal cartel conduct face a maximum penalty of up to 10 years in jail and a fine of $420 000 per offence.
Companies face either a $10 million fine or penalty three times the total value of the benefits obtained by the wrongdoing.
If the financial benefit cannot be fully determined the company can be slugged with a fine worth 10 per cent of its annual turnover.
ANZ last week said it was expecting criminal charges to be laid.
All three banks have denied the allegations and pledged to vigorously defend themselves and their employees.
The ACCC is alleging the banks acted as a cartel in relation to a $2.5 billion capital raising for ANZ in the way they handled stock not purchased by large institutional investors.
JP Morgan also served as an underwriter on the raising, meaning it agreed along with Citi and Deutsche to buy any stock large investors did not want.
JP Morgan is understood to have been given immunity from criminal prosecution after offering full disclosures to authorities.
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