SA fund manager, Neil Phillips, 52, released on R270m bond in fraud and currency manipulation case. Image: Jehran Naidoo/Independent Media.
Durban - Neil Phillips, a South African born co-founder and fund manager of Glen Point Capital, was released on a personal bond of $15 million (around R273m) after pleading not guilty to fraud and currency manipulation.
Phillips, 52, faces charges of conspiracy to commit commodities fraud, conspiracy to commit wire fraud, commodities fraud, and wire fraud in connection with a scheme to artificially manipulate the USD/ZAR currency pair.
He manipulated currency pairs to trigger a payout of around $30m for two options contracts, according to the US Attorneys Office.
Phillips was arrested in Spain last year, at the behest of US authorities, News24 reported.
He set up two payouts, one for a $20m options contract and another for $10m contract, authorities said.
Phillips’ hedge fund allegedly purchased the ‘One Touch’ option in October 2017.
If the USD/ZAR currency pair reached a certain point by January the following year, Phillips’ hedge fund would have been entitled to this $20m payout.
Glen Point Capital focused on macroeconomic trends, emerging markets and foreign exchange (Forex). Glen Point Capital is backed by billionaire investor, George Soros.
“As alleged, Neil Phillips – the co-founder and chief investment officer of a prominent U.K. hedge fund – manipulated the FX market in order to unlawfully obtain millions of dollars in payments for his hedge fund under an options contract,” U.S. Attorney Damian Williams said.
Deputy Director of the FBI, Michael J. Driscoll said: “As alleged, Mr. Phillips maliciously manipulated global markets in order to defraud financial institutions for illicit profit. The FBI is determined to root out these types of frauds so financial markets remain a level playing field.”
Phillips is set to return to court in October and is allowed “limited” travel between the US and UK.
Phillips is not the only one on the hook, as the 26 page indictment brought by the US Attorney, states that “others” were involved in the alleged currency manipulation as well.
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