Bungling Forex Trader Gets 3 Years

     MANHATTAN (CN) – A former financial services adviser for Smith Barney was sentenced Friday to 3 years and 2 months in federal prison for securities fraud and wire fraud.



     Sanjeev Jayant Kumar Shah, 36, pleaded guilty in November 2010 to three counts of wire fraud and one count of securities fraud.
     Shah admitted he lost millions of dollars in unauthorized foreign currency trades on behalf of a foreign bank, the U.S. Attorney’s Office said in announcing his sentence. To try to cover it up, he misappropriated $3.25 million from another foreign bank’s trading account with Smith Barney, prosecutors said. Then he fabricated documents that claimed the second bank authorized the $3.25 million in transfers.
     Shah, of New York City, also was ordered to forfeit $3.25 million.

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