A New York-based broker-dealer is on the hook for more than $2 million for its role in a conspiracy to rig bids of pre-release American Depository Receipts, according to news reports.
Banca IMI Securities, which is indirectly controlled by Italy’s Banca IMI, has pleaded guilty to antitrust violations, admitting to conspiring with others to borrow pre-release ADRs at artificially deflated rates, Reuters writes, citing the U.S. Justice Department.
Between March 2012 and at least August 2014, Banca IMI Securities reached agreements with co-conspirators on at least 30 occasions about the bids they would submit to U.S. depository banks, the Justice Department said, according to the newswire.
On several of those occasions, the broker-dealer’s co-conspirators agreed to all submit the same bid, Reuters writes, citing a statement from the Justice Department.
ADRs are negotiable certificates issued by U.S. depositary banks representing a set amount of shares of foreign stock.