Jason Katz, a former Barclays Plc currency trader, admittedconspiring to fix prices in the foreign-exchange market, making himthe third individual to be charged and the first to plead guilty ina long-running U.S. criminal investigation into the rigging ofcurrency rates.

Katz appeared in Manhattan federal court Wednesday, where headmitted to participating in a conspiracy with other bankers tomanipulate emerging-market currency trades while working at threedifferent financial institutions from 2007 to 2013. Separately, theFederal Reserve Board said it banned Katz from the bankingindustry.

Katz's conviction comes one day before five banks are scheduledto be sentenced in connection with the Justice Department'sthree-year investigation. The banks — Citigroup Inc., JPMorganChase & Co., Barclays and Royal Bank of Scotland Group Plc —pleaded guilty in May 2015 to charges that their traders conspiredto manipulate trading in U.S. dollars and euros. UBS Group AG alsopleaded guilty to a related charge.

Bloomberg previously reported that the currency-rigginginvestigation had expanded to additional chatrooms involvingtrading in emerging market currencies, including the Brazilianreal, the Russian ruble and the South African rand.

Katz was released on a $150,000 bond to be secured by propertyin New York's Delaware County. His travel is limited to New York,Connecticut and London until April 1, when he is to turn over hispassport and remain in the U.S.

Trading History

Katz spent a year as director of emerging markets-foreignexchange trading at Barclays beginning in 2010, according toregulatory filings and his LinkedIn profile. He joined BNP Paribasin September 2011 as its director of emerging markets-foreignexchange trading, before leaving for Australia & New ZealandBanking Group Ltd. two years later, the documents show. Beforejoining Barclays, Katz spent more than nine years at Standard Bank,where he was head of foreign exchange, according to his LinkedInprofile.

Prosecutors say Katz was a dealer of central and easternEuropean, Middle Eastern and African currencies and conspired tomanipulate prices through “non-bona fide trades,” coordinating theplacement of bids and offers, and agreeing on currency pricesquoted to specific customers.

Katz has agreed to cooperate with the government'sinvestigation. The conspiracy charge Katz admitted to has a maximumpenalty of 10 years in prison and a $1 million fine, which may beincreased based on the proceeds gained or the loss toinvestors.

“These conspirators engaged in blatant collusion and succeededin manipulating exchange rates for multiple currencies to theiradvantage,” said Brent Snyder, a deputy assistant attorney generalwith the department's antitrust division. “Conspiracies such asthis undermine the integrity of our financial markets, and theAntitrust Division is committed to ensuring that they are pursuedand punished.”

Currency Chats

Katz's time at Barclays coincides with that of Chris Ashton, theformer global head of spot trading at the London-basedbank. Prosecutors have been investigating allegations thatAshton and a group of other traders participated in an electronicchatroom called The Cartel where they conspired to rig currencyprices.

Ashton was permanently banned from U.S. banking by the U.S.Federal Reserve in August. It isn't clear whether Katz had anyinteraction with Ashton or other members of The Cartel.

Those chatroom discussions formed the basis of guilty pleas byfour of the banks, which are scheduled to be sentenced Thursday inConnecticut. Barclays, JPMorgan and Citigroup provided evidence ofa potential new antitrust conspiracy in the currency spot marketthat prosecutors say involves different currencies than the ones atthe center of their 2015 guilty pleas.

The case is U.S. v. Katz, 17-cr-00003, U.S. District Court,Southern District of New York (Manhattan).

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