ANZ bank and execs face criminal charges

ANZ, Citigroup and Deutsche Bank could be fined 10% of their annual turnover, while the individuals face 10 years' jail if found guilty.

a court gavel and scales of justice

Image source: Getty Images

Australia and New Zealand Banking Grp Ltd (ASX: ANZ), Citigroup Global Markets Australia Pty Limited and Deutsche Bank AG (ETR: DBK) and 6 of their executives have been committed to stand trial.

The banks plus John McLean, Rick Moscati, Michael Ormaechea, Michael Richardson, Stephen Roberts and Itay Tuchman face criminal charges of running a cartel.

NSW Local Court in Sydney on Tuesday committed the case to a trial in the Federal Court.

The allegations include making arrangements to run a cartel in 2015 in relation to trading ANZ shares held by the other two banks.

ANZ and each of the 6 executives are accused of knowingly being involved in the cartel conduct.

The charges arose after a Australian Competition and Consumer Commission (ACCC) investigation.

ACCC chair Rod Sims declined to comment as the matter is now the subject of a criminal case.

If found guilty, corporations face a maximum fine of the greater of $10 million or 3 times the total benefits earned from the cartel conduct. If the benefits can't be calculated, it could be slugged 10% of its annual turnover in Australia.

The 6 executives each face 10 years' imprisonment, a $420,000 fine or both.

The Federal Court will hear the case at a date to be determined.

ANZ shares were up 0.26% on Tuesday, closing the day at $23.40.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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