EDITOR NOTE: Former JPMorgan Chase trader, Akshay Aiyer, was sentenced yesterday to two years “supervised release” on top of a $150,000 fine for colluding with traders at other banks to rig the currency markets. In a statement made after the sentencing, his lawyer said “it doesn’t seem fair,” as Aiyer was singled out. Perhaps he’s right, to the extent that his collusion wasn’t an isolated event but part of the culture that drives JPM and possibly most other large banks (we also curated an article that described a similar instance of collusion with Deutsche Bank). No matter how awful these schemes may sound, its impact on the average person pales in comparison to the theft that the Federal Reserve has been doing to the average American by devaluing their purchasing power in order to boost valuations for the country’s wealthiest 1% to 10%.
NEW YORK (Reuters) - A former JPMorgan Chase & Co JPM.N foreign exchange trader was sentenced on Thursday to eight months in prison, following his Nov. 2019 conviction for conspiring with traders at other banks to rig currency trades.
Akshay Aiyer, 37, was also sentenced to two years supervised release and fined $150,000 by U.S. District Judge John Koeltl in Manhattan.
Prosecutors had sought up to 46 months in prison, while the defendant sought probation.
Aiyer was charged with colluding with other traders from Oct. 2010 to July 2013 to fix prices of and rig bids for Central and Eastern European, Middle Eastern and African currencies.
Prosecutors said the traders would swap trading positions, customer information and order pricing through chat rooms, phone calls and text messages, to boost profits at customers’ expense.
Aiyer’s case was part of a broad U.S. probe into currency manipulation by the banking industry.
“The conspiracy threatened the integrity of the market,” and the idea “everyone did it” is “plainly not an excuse,” Koeltl said.
Aiyer grew up in Pune, India, about 93 miles (150 km) southeast of Mumbai. He came to the United States in 2002 to attend Vassar College.
Before being sentenced, Aiyer told the judge he had tried to conduct himself professionally, and it was a “total shock” to be charged.
“I recognize that I have no one to blame but myself,” Aiyer said.His lawyer Martin Klotz objected to the sentence, saying “it doesn’t seem fair” to single out Aiyer. He also said Aiyer’s asthma heightened his risk of illness from COVID-19 in prison.
Aiyer is among at least six people criminally charged in the Manhattan court in the currency probe.
Two cooperated with prosecutors in Aiyer’s case, while three London-based traders were acquitted in Oct. 2018.
Banks including JPMorgan have paid more than $10 billion of fines to resolve regulatory probes worldwide into currency manipulation.
The case is U.S. v. Aiyer, U.S. District Court, Southern District of New York, No. 18-cr-00333.
Originally posted on Reuters