Complinet logo
Contact us

Forex trader must pay $2.5 million to Miami brokerage over unauthorized trades

Dec 06 2012 Suzanne Barlyn, Reuters

A former head of the foreign currency desk at a Miami-based financial services company must pay the firm nearly $2.5 million for breaching the terms of his employment by allegedly making unauthorized trades, according to an arbitration ruling. A Financial Industry Regulatory Authority (FINRA) arbitrator found against Ramses Villela in the case filed in 2011 by Bulltick LLC, a firm specializing in Latin American markets. The firm accused Villela of common law fraud, breaching his employment agreement and converting funds, and other misdeeds, according to the ruling dated Tuesday. The arbitrator specifically found Villela liable for breaching his employment agreement and obligations. The case illustrates the potential risks that rogue traders pose to financial firms. Villela made the trades using the firm's credit, according to Edward Mullins, a Miami-based lawyer who represented Bulltick. "No client funds were at risk," he told Reuters. Efforts by Reuters to locate Villela

Already have an account?

Log in

Want to read this article?

Click here for a free 14 day trial