Mark Johnson, former HSBC trader, just won a significant legal victory. A US appeal court has cast aside his fraud conviction, bringing to conclusion a huge saga that began almost 10 years ago. On July 19, 2016, Johnson was pulled over while he was transporting his son and their friend to JFK Airport. He is now under intense scrutiny for claims that he got rich by rigging foreign exchange markets.
In 2017, federal authorities prosecuted Johnson for allegedly conspiring with a fellow officer. They charged that he cornered the market in sterling versus the dollar, causing his prosecution and conviction. The prosecution had argued that this conspiracy had taken place, not just before, but immediately prior to executing a massive discriminatory foreign exchange trade for HSBC’s customer, Cairn Energy. This particular transaction was on the high side, converting $3.5 billion into pounds. His arrest coincided with a period of time when Congress was ratcheting up its pressure on the US government to start prosecuting HSBC workers. This development further contributed to the case’s sensationalism.
He has served time in Wandsworth prison in London. Though he pursued all possible legal appeals, he was eventually released on license in 2022. In 2023, the UK court of appeal quashed his conviction. We asked his attorney, Susan Simpson, what this moment means after a nine-year ordeal.
Alexandra Shapiro, Johnson’s US lawyer, expressed her relief at the court’s decision.
“We are delighted that justice has finally been achieved for Mark Johnson, after a nine-year ordeal. This is a case that never should have been brought.” – Alexandra Shapiro
Shapiro stressed that Johnson had executed the Cairn transaction in line with practices in the industry. He claimed that Johnson didn’t break any laws or rules.
“Mr Johnson carried out the Cairn transaction consistent with industry practice and in violation of no law or rule, and he looks forward to moving on with his life.” – Alexandra Shapiro
As a father of five from Hampshire, Johnson now looks ahead to rebuilding his life after years of legal challenges and imprisonment. The recent decision rehabilitates his name and reputation. At the same time, it resolves a highly controversial case with stark consequences for the banking industry.