NEW YORK — A senior HSBC Holdings manager has been arrested and charged alongside a former foreign exchange executive with engaging in a scheme to front-run a $3.5bn transaction by one of the bank’s clients, US prosecutors said on Wednesday.Mark Johnson, HSBC’s global head of foreign exchange cash trading in London, and Stuart Scott, its former head of cash trading for Europe, the Middle East and Africa, were charged in a criminal complaint filed in a federal court in Brooklyn.The men were charged with wire fraud conspiracy.A lawyer for Johnson declined to comment, while an attorney for Scott could not be identified. Robert Sherman, an HSBC spokesman, said the bank was co-operating in the US justice department’s investigation.Prosecutors said that Johnson and Scott misused information provided by a client who had hired HSBC to convert $3.5bn to British pounds in connection with a planned sale of one of the unnamed company’s subsidiaries.The two British citizens then used their insid...
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