Rogue trader Rusnak receives prison sentence
John Rusnak, the former Allied Irish Banks (AIB) trader responsible for $691 million in fraudulent losses related to yen-dollar currency forwards, has been sentenced to seven and a half years in prison.
He managed to convince the back office at Allfirst Financial, AIB’s Baltimore-based subsidiary, that as there was no net cash position on the trades, they did not need to be confirmed.
“We maintained from the beginning that we were the victim of a complex and serious fraud, and today’s sentence has endorsed that,” said a spokesman for AIB.
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