May 2010 Financial News

FGB suing rogue trader for US$7.6m

May 19, 2010

First Global Bank (FGB) suing its former vice president treasury, Rohan Rose, for US$7.6 million ($680 million) for his role in irregular trading that lost the bank US$19.9 million ($1,768 million).

On Monday, GraceKennedy Limited notified the Jamaica Stock Exchange (JSE) that its subsidiary was seeking the damages for "breach of fiduciary duty, negligence, breach of contract, fraud, and restitution for and by reason of unjust enrichment".

The notification also sought to make public an injunction in the Supreme Court restraining Rose, from disclosing confidential information about the bank and its clients.

"The order restrains Mr Rose "whether by himself, his attorneys at law, servants, or agents, or any of them, or otherwise howsoever" from making use of any confidential information obtained by reason of his capacity or office while employed to the bank. This includes, but is not limited to, customer information, discussions at and minutes of, internal meetings, and internal correspondence between staff and directors of the bank," said the statement.

The injunction remains in force until June 4, at which time it will be further considered by the Court.

In August 2009, tGraceKennedy conducted an internal review of the treasury operations of FGB and detected certain irregular transactions related to the trading of US treasuries. Further investigations have confirmed that FGB suffered losses of J$1,768 million (US$19.9 million) from these irregularities, of which $926 million relates to 2008.

In March, Rose was arrested and charged by the Organised Crime Investigation Division (OCID) with two counts of Conspiracy to Defraud, Uttering Forged Document, Causing monies to be paid out by means of a Forged Document, Causing Monies to be paid out by False Pretence and Conspiracy to Forge


Source:
Jamaica Observer
Wednesday, May 19, 2010

http://www.jamaicaobserver.com/business/FGB-suing-rogue-trader_7625781