A bond trader pleaded guilty on Wednesday to conspiring to defraud Royal Bank of Scotland Group Plc customers by lying about the prices of bond transactions he handled for them in an effort to boost the bank's profit. Matthew Katke, 34, of New York, pleaded guilty to one count of conspiracy to commit securities fraud and will cooperate with prosecutors, U.S. Attorney Deirdre Daly in Connecticut said...Prosecutors said Katke conspired with colleagues at RBS, where he worked from 2008 to 2013, to cheat customers out of millions of dollars on collateralized loan obligations, causing buyers to pay too much and sellers to accept deflated prices. Katke would typically lie about sellers' asking prices and keep the differences or charge extra commissions by inventing third-party sellers, prosecutors said. [Reuters]
Feds Have Not Great News For Anyone Who Cheated Clients In The Presence Of Adam Siegel At RBS
He's gone back on the 'office bros before regulator hoes' pledge.