NEW YORK — A senior HSBC manager has been arrested and charged alongside a former foreign exchange executive for 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 ex-head of cash trading for Europe, the Middle East and Africa, were charged in a criminal complaint filed in federal court in Brooklyn.Both men were charged with wire fraud conspiracy, in a case that a person familiar with the matter said was the first against individuals to flow out of a US Justice Department probe of foreign-exchange rigging at global banks.A lawyer for Johnson declined to comment, while an attorney for Scott could not be identified. Robert Sherman, an HSBC spokesman, said the bank is co-operating in the Justice Department’s foreign exchange investigation.Prosecutors said Johnson, 50, and Scott, 43, misused information provided by a client...
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