CAIC and UBS to settle $7 billion CAIC to settle insider transaction claims
CAIC announced Tuesday it will settle a claim that it helped facilitate a $7.5 billion insider-trading scandal by allowing clients to purchase stock before it was sold to its customers.
The settlement is subject to approval by the U.S. Securities and Exchange Commission.CAIC is the world’s largest trading and advisory firm.
In addition to being a key player in financial services, CAIC serves as a clearing house for financial products, including derivatives, in the U-turn and in the settlement of trades.
It has also played a major role in helping to manage a number of complex derivatives that are traded on the market today.
In 2015, the SEC accused CAIC of illegally facilitating a multi-trillion dollar insider-trade scheme that allowed customers to purchase shares of UBS AG before they were actually traded.
CAIC was later found to have sold a fraction of its shares to UBS before the transactions occurred, allowing the firm to profit from its wrongdoing.
CAICS is also under investigation by the Federal Bureau of Investigation (FBI) for allegedly facilitating a $1 billion insider trading scheme in 2013 that resulted in losses for some of the world ‘s largest banks, including Citigroup Inc., Morgan Stanley, Barclays PLC, and Deutsche Bank AG.
The settlement agreement with the SEC will be the largest insider-sale settlement in U.C.
S history, according to a press release.
In 2018, the Federal Trade Commission fined CAIC $8 million for helping clients conceal derivatives trades, the largest penalty ever imposed by the commission.CAICS has a long and storied history of insider-shares, with several former executives having served in the company’s board of directors.
CAICA has been under federal scrutiny for its role in the 2009 Libor manipulation scandal that led to the global financial crisis, which was later brought to the attention of the U,S.
Senate and the House of Representatives.