FBI Sting Nets 48 Arrests on Wall Street

Yahoo News via Reuters ^ | 11/18/03 | By Hugh Bronstein and Greg Cresci

[Wolfstar]

NEW YORK (Reuters) - Federal Bureau of Investigation agents arrested 48 Wall Street foreign exchange brokers on Tuesday in what appeared to be a sting operation targeting several well-known firms.

FBI officers swarmed on Two World Financial Center late on Tuesday afternoon and led out men in business suits, taking them away in vans and cars. Some of the men covered their heads with overcoats while others bowed their heads to hide from television cameras and photographers.

FBI agents began arresting brokers at the tony office building in downtown Manhattan shortly after 3 p.m. and for about two hours led out handcuffed people dressed in business attire.

"It's currency fraud, securities fraud," said one agent at the scene of the arrests. "It's been a long investigation. The arrests have been ongoing today."

The FBI sources said the Wall Street traders will be charged with swindling retail investors of an undisclosed amount of cash over the past year. One source said those arrested would be charged with money laundering and fraud.

NBC reported the defendants scammed retail investors into thinking they were buying multimillion-dollar foreign exchange trades when it is not possible for those types of investors to participate in such deals.

A Reuters reporter on the 36th floor of Two World Financial Center witnessed FBI agents removing about 10 boxes from one company's office.

A spokesman for the FBI declined comment but said the agency will hold a briefing on Wednesday. A spokesman for the U.S. Attorney and the Treasury Department also declined comment.

Among those arrested were three brokers at the inter-dealer brokerage ICAP (IAP.L), which operates at a different location, according to another source.

The unexpected operation came at a time when America's financial markets have been hit by scandal after scandal. Corporate wrongdoing by companies like Enron, which went bankrupt in 2001, sparked a massive accounting scandal that rocked investor confidence and unearthed irregularities at other companies.

Since then Wall Street equity research companies have been targeted by prosecutors for inflating stocks during the Internet boom of the late 1990s. More recently the mutual fund industry has been investigated on charges of price gouging.

Until Tuesday the foreign exchange market, which boasts top companies, millionaires and banks as their primary clients, has remained untouched by scandal.

The names of other companies involved remained unclear, but sources told Reuters at least four companies were targeted. Sources said none of the companies targeted were household names outside of the securities industry but are well known and regarded in the Wall Street community.

[agitator]

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[fight_truth_decay]

Or maybe they had to be accredited investors to participate and they were not.

ICAP is one of the world's largerst interdealer brokers. DIRECTORS' BIOGRAPHIES of ICAP.

[LurkerNoMore!]

You've seen his hair, right? Rumor has it he dries it with paper towels to get just the right "look".

[NYC GOP Chick]

Well, *that* goes without saying!

[NYC GOP Chick]

Nope, I have no idea what he looks like. :)

[Senator Pardek]

They actually give normal haircuts. I have long hair as a rule - so I don't want any oldtimer like that guy from that Seinfeld episode messin' with my hair ;)

[Syncro]

LOL

I think it is and "IN" thing...

[Beck_isright]

"Have some pride, some self-respect."

You mean like that gutless CEO of Enron sending his wife out to do the interview? It's sad that after 73 years, our nation has yet to educate a better class of white collar criminals.

[NYC GOP Chick]

How long is your hair???

[Senator Pardek]

Go here.

[185JHP]

"As through this world I've rambled, I've seen lots of funny men. Some will rob you with a sixgun, some with a fountain pen." Woodie Guthie BUMP

[nuffsenuff]

Foreign exchange huh?

Soros, anyone?

[MississippiMan]

Hope this is not a duplicate post.

If it is, rest assured the Posting Gestapo will call you out for your dastardly deed!

MM

[Sam Cree]

"Wear a suit, or wear gang colors.Same mindset, different education levels. Past time for white collar crime to do serious time."

I think they should do time too. However, I do think violent crime to be more serious than white collar crime, as violent crime threatens life as well as wealth.

[SierraWasp]

"More recently the mutual fund industry has been investigated on charges of price gouging."

That's not precisely what they've been charged with! What kind of a spin is this reference to mutual fund "price gouging?"

[Timesink]

Har - I'm heading down to Astor Place Hair Stylists on Saturday, and I don't wanna get blown up!

I'd say you have far more to worry about from the shemale prostitute robbery gang that's formed at Harvey Milk High School next door than from any theoretical bombings in that area.

[maestro]

UR#52........Yep?

George Soros......and,....Maurice Strong?

naw

/sarcsam

Toronto Exchange.......Vancouver too?

naw

:-(

[Young Rhino]

Looking proud and confident helps in the press when trying to defend yourself.

Always considered the Teflon Don's demeanor to be the perfect example of how one should be in a perp walk. This isn't applauding his crimes, just his effective use of the camera.

[Young Rhino]

It's sad that after 73 years, our nation has yet to educate a better class of white collar criminals.

The perfect community service plea agreement for Martha Stewart. :-)

[NYC GOP Chick]

That came up as red X's... :(