Ex-HSBC Trader Wins Appeal: Fraud Conviction Overturned – What It Means for Him and the Industry

A British trader, Mark Johnson, has finally seen his wrongful conviction for manipulating foreign exchange rates overturned after nearly a decade of fighting for justice. Johnson, 59, who previously worked for HSBC, was convicted of fraud in 2017 linked to a significant currency trade from 2011.

He spent time in US federal prisons and in Wandsworth prison in the UK before being released on license in 2022. Recently, a US appeals court granted him a full acquittal after a law used to prosecute him was overturned.

Johnson’s lawyer, Alexandra Shapiro, expressed relief, stating, “We are delighted that justice has finally been achieved for Mark. This case never should have been brought.”

At his trial, prosecutors claimed Johnson conspired with a colleague to inflate the price of sterling before executing a major trade for Cairn Energy, converting $3.5 billion into pounds. They accused him of “front-running”—buying currency in advance to benefit the bank.

However, the ACI Financial Markets Association, a body representing foreign exchange professionals, argued that what Johnson did is a common practice known as “pre-hedging.” This method is used to manage risk and isn’t illegal.

Johnson, a father of five from Hampshire, was arrested in July 2016 while taking his son to JFK Airport. His trial occurred shortly after Congress demanded the prosecution of HSBC employees following a report titled “Too Big to Jail”. This report revealed government efforts to shield HSBC from prosecution for serious allegations, including laundering money for a Mexican drug cartel.

Interestingly, Johnson was pushed into a role in the US months before his arrest, avoiding extradition proceedings that his co-defendant, Stuart Scott, faced. Scott fought and ultimately won his extradition case, leading to the DOJ dropping charges against him.

This case highlights ongoing concerns about accountability in the financial industry. As concerns over corruption remain prevalent, cases like Johnson’s challenge us to think critically about justice and fairness in legal processes, especially within powerful institutions.

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