(Bloomberg) — A former Nomura Holdings Inc. and Royal Bank of Scotland Group Plc trader pleaded guilty in a securities-fraud case and agreed to cooperate with U.S. prosecutors.
Matthew Katke pleaded guilty Wednesday to conspiracy to commit securities fraud for participating in a multimillion-dollar scheme to cheat customers who bought and sold bonds, U.S. Attorney Deirdre Daly in Connecticut said in a statement. A lawyer for Katke, Richard Albert, declined to comment on the plea.
Katke traded collateralized loan obligations, securities backed by high-yield corporate debt. He is no longer employed by Nomura, according to a person with knowledge of the matter, who asked not to be identified because the decision wasn’t public. The charges are tied to his activities while at RBS in Stamford, Connecticut, where he worked before joining Nomura in 2013.
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His guilty plea follows a string of suspensions at Wall Street banks as regulators scrutinize transactions in debt backed by everything from mortgages to corporate loans.
As part of the scheme, Katke and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and sellers who were customers to accept deflated prices for bonds, prosecutors said.
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