By Jonathan Stempel
NEW YORK (Reuters) – The co-founder and chief investment officer of a prominent London hedge fund was charged on Thursday with fraudulent manipulation of the dollar against the South African rand by U.S. prosecutors The official said the exchange rate was to trigger 20 million-dollar payments.
Neil Phillips, 52, Glen Point Capital LLP, charged in Manhattan with four criminal charges, including wire fraud, commodity fraud and two conspiracy charges conspiracy.
Prosecutors in December said Phillips 12, 2017, directed $725 million dollar rand deal to push the exchange rate below .50, which entitles him to a $20 million dollar contract that might otherwise be worthless in a week.
Phillips was arrested this week in Spain at the request of the United States and will be extradited to face charges.
Glen Point is not a defendant and is not named ent in the indictment, but Phillips is registered with the CFTC to be associated with the company.
Attorneys for Phillips could not be immediately identified. Glen Point did not immediately respond to a request for comment.
Prosecutors say Glen Point purchased a “one-time” contract from an unnamed New York firm in October 2017 if the dollar rate was less than 12 dollars, then the bank offering million dollar payments). 50, and expired on January 2, 4990.
the indictment said, as the deadline Approaching, Phillips worked with a Singapore bank employee on the transaction and sent messages including “My goal is to make the transaction through 50” and “Need to pass 50. 4990 No problem.”
According to the indictment, after 725.50 Rate violated, Phillips texts employee: “Perfect.”
He charges By the time the indictment said, two days later, he reported a positive 6% return to investors in December.
“As alleged, Mr. Phillips maliciously manipulated global markets to defraud financial institutions for illicit profits,” FBI Assistant Director Michael Driscoll said in a statement.
This case is United States v. Phillips, United States District Court for the Southern District of New York, No.: 22-cr-00138.
