Former HSBC foreign money dealer wins attraction in opposition to U.S. extradition

LONDON (Reuters) – A former HSBC (HSBA.L) government has received a British courtroom battle in opposition to the U.S. government over his extradition, in line with the decide’s ruling revealed on Tuesday.

The United States had needed to extradite Stuart Scott, HSBC’s former head of money buying and selling for Europe, the Middle East and Africa, to face fraud costs over allegations he and a colleague defrauded consumer Cairn Energy Plc (CNE.L) in a $three.5 billion (£2.7 billion) foreign money commerce in 2011.

Scott took his case to London’s High Court within the hope of overturning an earlier courtroom resolution to ship him to the United States in a case that has already seen his colleague, Mark Johnson, sentenced to 2 years in jail.

The decide, Lord Burnett, dominated in favour of Scott’s attraction, saying it was not within the pursuits of justice for him to be extradited as a result of many of the alleged crimes occurred in Britain and since Scott has no vital connection to the United States.

“Conversely, those factors which told in favour of extradition were of significantly less weight,” he mentioned in a written ruling.

“In these circumstances this court is entitled to say that the judge’s overall evaluation was wrong … the appellant’s extradition is not in the interests of justice and the appeal should be allowed.”

The courtroom’s uncommon resolution to dam a U.S. extradition request for now permits Scott to keep away from the destiny of Johnson, who turned the primary banker to be tried within the United States because of worldwide investigations into the multi-trillion-dollar per day foreign money market. He was convicted in October.

The U.S. Justice Department declined to remark.

U.S. prosecutors allege that Scott and Johnson, previously head of HSBC’s global international trade money buying and selling desk, schemed to ramp up the value of British kilos earlier than executing the commerce for Cairn, making thousands and thousands for HSBC at Cairn’s expense.

Cairn had employed HSBC in 2011 to transform $three.5 billion into British kilos sterling in reference to the sale of an Indian subsidiary.

Scott’s lawyer, Anne Davies, mentioned he was “very pleased” with the courtroom’s judgment, however added that the United States has indicated an intention to attraction.

“As proceedings are ongoing it would be inappropriate to comment any further,” she mentioned in a press release.

Scott’s legal professionals argued that the extradition request misrepresented the connection between HSBC and Cairn, which they mentioned had made clear HSBC was not performing as an agent of the agency and didn’t owe it any fiduciary obligation, and that no crime had been dedicated underneath English legislation.

HSBC declined to remark. The financial institution agreed to pay Cairn $eight.08 million underneath a settlement reached in July 2017.

Reporting by Emma Rumney, extra reporting by Nate Raymond in Boston; enhancing by David Evans

Our Standards:The Thomson Reuters Trust Principles.

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