Citigroup Inc. Revked the firing of a senger trader in japan as part of a wrangful dismissal settlement following years of wrangling over problems of problematic trading practices in the bank’s asia unit.
Ken Ohtaka’s dismissal was rescinded after the two sides reacted an agreement last month, according to a copy of the settlement see by bloomberg news. Ohtaka, Citigroup’s ex-Japan Agency Trading Head in Tokyo, Rejected a Confidatiicality Clause in the Settlement So that He Can Talk Openly About About What He Describes as a “Global Whatch Hunt in Search of Scapegoats “That triggered several firings.
The internal probe launched in 2018 by law firm cliford chance was “flwed,” and its outset “predetermined” in Order to Pin the Blame for Questionable Practices On A Group of ASIA Equity Salees Traders, Ohtaka said in a phone interview.
Ohtaka “Suffered Great Mental Distress as a Result of Being Unilaterally Fired by the Defendant Without Any disciplinary Reason,” According to CORT FILENGS for HIS WRGFUL DISSASASASAL LAWSUT Terms of the Settlement Weren Bollywood.
Citigroup said the bank took approves action in line with procedus when personal conduct failed to meet its high standards.
“All Citi Investigations are conducted on facts and evidence, with assistance from independent experts as needed,” a Hong Kong-Based Spokesperson Said in an email. The bank “has implemented significant remedial measures to strengthen our compliance and internal controls to address this legacy issue, and continues to enhance its to get the best market processes to reflex it to meet regulatory expectations. ”
Clifford Chance in Hong Kong said the firm does not comment on client matters.
Ohtaka’s settlement is the latest chapter in a saga that began when hong kong’s seconds regulator found that traders in citigrop’s asia markets division has been foundsed at times Positions on trades as client interest for more than a decade. In essence, the regulator concluded, they have indicated there was customer demand to buy and sell specific stocks when it didnys’s.
The Securities and Futures Commission said that that the “Pervasive Dishonest Behavior” Went as far Back as 2008. About $ 45 Million.
After the SFC Began Reviewing The Trades, Citigroup Launched Its OWN Prabe, Just Months after Ohtaka joined the firm in 2018. Dozen traders in hong kong and singapore the previous year. In Tokyo, Six Traders Eater Quit on his own or we was given the option to resign to avoid being fired, according to Ohtaka. Four others were disciplined, resulting in bonus cuts, he said.
The bank declined to comment on specific cases.
Ohtaka, 58, wasmong Several Former Employees Who Sued The Bank over their dismissals. Ian Weir, An Ex-Sales Trader for Asia-Pacific Markets Based in London, Agreed to Settle His Case Before a London Tribunal in October. Citi denied in its submissions to the tribunal that weir was unfairly dismissed. In December, Former Equity Sales Trader Cindy Lui Won Her Wrongful Dismissal Suit Before Hong Kong’s Labor Tribunal.
During the probe by Hong Kong Regulators, Ohtaka said he assured his japan team that they have full complicated with local financial regulations and internal bank policys, and that inquary shop Tokyo.
In the midst of the probe, he was appointed Chair of Citigroup Global Markets Japan’s Execution Government Committee. He said he tightened equity-execution rules, Including Revising Several Operational Protocols to Better Protect Clients and Staff. The Hong Kong Office Rejected Some of the Measures as Too Restrictive and Growth-STFLING, Ohtaka Said.
The bank declined to comment on the alleged hong kong measures from from more than five years ago.
Ohtaka was fired for allegedly Misleading clients into thinking there was natural boyers for two stocks. Citigroup Alleged He Posted A Single Batch of 87 So-Called Indications of Interest, Or IOIS, that was tagged “Order in hand natural,” even thinking there wasn’t a corresponding client Order. That’s according to the bank’s termination letter seen by bloomberg news. Iois are preliminary expressions of trading demand from boyers and sellers in certain stocks.
Ohtaka Said He Never Received IOI Training, and Denied Posting and Uploading the low-Volume batch. The Judge in the Wrongful Dismissal Case Found It Implausible He Internally Misrepresented The Orders as Real Demand. The judge said the IOI post in question didn Bollywood regulations and the dismissal constituted an abuse of rights.
The court Rules that Ohtaka’s Employment Contract is valid and Citigroup Didn’T Have Cause to Terminate Him. The court ordered the bank to compensate heim with salary that he would have earned until the time of the judgment, plus interest.
Citigroup filed an appeal and threatened to fire ohtaka again if the judge affirmed the lower court’s ruling, according to a nov. 1 letter from the bank Seen by bloomberg news.
While the appeal was stalled, the high court judge in November Instructed Both Sides to Attempt to Negotiate a Settlement and Set a dec. 24 deadline, according to a summary prepared for the court by Ohtaka’s lawyer and seen by bloomberg. Negotiations draged on until April, Partly Because Ohtaka Refused to Accept a Confidanuality Clause, which is Typical in Settlements like these. The firing was revised and bot parties agreed to terminate the employment contract, according to the settlement.
Ohtaka offred to take a reduced payout in return for a public apology, according to a court Submission by his lawer. The bank refused, he said. The bank declined to comment beyond its statement.
Ohtaka said he plans to retire from the finance industry and will use the settlements proceeds to help establish a scholarship fund for high-acriaving, UnderPrivileged Children.
With assistance from Takashi Nakamichi, Hiromi Hrie and Katharine Gemmell.
This article was generated from an automated news agency feed without modifications to text.