August 8, 2011 / 4:00 PM / 8 years ago

Ex-Citi senior trader fined $1.5 mln for fraud-CFTC

  * CFTC: Former Citi trader ordered to pay $1.49 million
  * Trades occurred in palladium and platinum futures
  * Court order also imposes trading, registration ban
  WASHINGTON, Aug 8 (Reuters) - A former trader and vice President for Citigroup (C.N) has been ordered by a federal court to pay over $1.49 million for unlawful trading, misappropriation, and fraud, the U.S. futures regulator said on Monday.
  Otmane El Rhazi, a Moroccan national, engaged in a series of “fictitious trades” starting on Nov. 23, 2010 in order to steal money from Citibank and deposit it into his own account, according to the court order. El Rhazi worked for Citigroup Global Markets Limited in the United Kingdom.
  The former Citi trader engaged in noncompetitive palladium and platinum futures transactions on the New York Mercantile Exchange’s Globex trading platform that moved $373,860 from the Citi account to his own.
  The court order, which was entered on July 29, 2011 by Judge Denise Cote of the U.S. District Court for the Southern District of New York, requires El Rhazi to pay $373,860 in restitution and a $1,121,580 civil monetary penalty.
  The order also imposes permanent trading and registration bans against El Rhazi.
  Earlier this year, the CFTC finalized a rule that will give it more muscle to crack down on market manipulation and fraud.
 (Editing by Sofina Mirza-Reid)        

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