Head of FX operations at Barclays charged over front-running scheme

Robert Bogucki will appear in court today over allegations of volatility price manipulation and wire fraud.

The former head of foreign exchange trading operations at Barclays in New York has been charged for orchestrating a multi-million front-running scheme.

Robert Bogucki allegedly manipulated £6 billion worth of FX options in order to depress the price of volatility for the benefit of the investment bank, prior to the execution of a large volume trade.

According to the indictment, one Barclays trader stated Bogucki said at the time he and other traders would “spank the market” and “hammer the market lower” by using confidential information to manipulate the market.

“Robert Bogucki and others allegedly not only betrayed his client’s confidences, but also risked undermining public trust in the foreign exchange options market,” said acting assistant attorney general John Cronan of the Justice Department. 

Inspector General Lerner of the Federal Deposit Insurance Corporation added: “The indictment returned today charges a fraudulent manipulation scheme where the defendant betrayed Barclays’ client by lying and misusing the client information, and then masked the activities.”

Boguki has been charged with one count of conspiracy to commit wire fraud and six counts of wire fraud, and he will make his first appearance in court on Wednesday in New York.

The Justice Department added the charges against Bogucki in the indictment are currently allegations and the defendant is presumed innocent unless proven guilty.