TD Bank dealer says spoofing deal denies him a good trial

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A former Toronto-Dominion Bank dealer charged with spoofing U.S. Treasuries requested a federal choose to throw out the case, saying the federal government’s announcement of a settlement with the financial institution successfully denied him the best to a good trial.

Jeyakumar Nadarajah, who was as soon as TD Bank’s head of U.S. Treasuries buying and selling, was indicted in November 2023 on 16 counts of fraud and securities manipulation for allegedly putting “spoof” orders to artificially drive up costs. TD Bank final month agreed to pay greater than US$20 million as a part of an settlement with U.S. prosecutors and regulators to resolve investigations into Nadarajah’s behaviour.

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But Nadarajah’s legal professionals mentioned in a courtroom submitting that the federal government’s announcement of the deal turned “the constitutional proper to a good trial on its head” by telling the world that the dealer was responsible. Prosecutors violated Justice Department coverage by issuing opinions a couple of defendant earlier than trial with out inserting language indicating that Nadarajah is presumed harmless, in accordance with the submitting.

“Mr. Nadarajah has, after all, pleaded not responsible to the offences and is exercising his proper to a jury trial; nonetheless, the federal government has taken the extraordinary step of appointing itself the decider of reality and regulation, displacing each the jury and the courtroom, and introduced to the world that Mr. Nadarajah is responsible,” his lawyer, William A. Burck, mentioned within the submitting in federal courtroom in New Jersey.

Several merchants have confronted prosecution lately for spoofing, the act of putting after which cancelling an order to create a misunderstanding to different market contributors. Nadarajah is dealing with as a lot as 20 years in jail for every rely of wire fraud, securities fraud and securities manipulation if convicted at his trial subsequent 12 months.

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Prosecutors and TD Bank declined to touch upon the submitting.

He mentioned TD Bank’s settlement accommodates a “draconian risk” that will put “intense and improper” stress on workers who is likely to be referred to as as witnesses in Nadarajah’s case as a result of they’re represented by the identical legal professionals because the financial institution who negotiated the settlement with the federal government and could also be urged to “testify to precisely what the federal government has alleged and should show to convict Mr. Nadarajah.”

“Mr. Nadarajah believes that, if these witnesses reply honestly, they’ll contradict prior data that they supplied to the federal government, significantly after-the-fact data and opinions about Mr. Nadarajah’s buying and selling,” in accordance with the submitting.

The 14-page indictment doesn’t title the monetary establishments the place Nadarajah has labored, however trade information present he was at TD Bank on the time of the alleged conduct and most just lately at Jefferies Financial Group Inc.

TD Bank’s decision of the spoofing probe got here only a week earlier than it pleaded responsible in an unrelated case of failing to stop cash laundering and agreed to pay nearly US$3.1 billion in fines and different penalties.

The case is U.S. v. Nadarajah, 23-cr-891, U.S. District Court, Southern District of New York.

Bloomberg.com

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