Barclays dismissed mortgage-bond trader Yoon Seok Lee over claims that he lied to clients.
Lee was "discharged" on Feb. 11 after "allegations involving certain inaccurate communications to customers during the negotiation of residential mortgage-backed securities trades," Financial Industry Regulatory Authority records show.
Mark Lane, a Barclays spokesman, declined to comment. Telephone messages left Friday on phone numbers listed for two individuals with Lee’s name weren’t returned, and he didn't immediately respond to a message for comment sent via his LinkedIn account.
The FINRA notice was published earlier Friday by an industry newsletter, which had previously said Lee was among a slew of Wall Street securitized-debt traders put on leave by their employers or otherwise absent after the U.S. criminally charged a former Jefferies Group trader with misconduct.
The Justice Department and the Securities and Exchange Commission are using the case against Jesse Litvak as a model in building more potential securities fraud actions, people with knowledge of the probes said last year. One of three judges hearing Litvak's appeal of his conviction said this month that the trader may have done nothing worse than what a homeowner does when selling a house.
JPMorgan Chase & Co., Royal Bank of Scotland Group and Morgan Stanley are among firms that have put traders on leave amid the inquiries. Matthew Katke, a former RBS trader of collateralized loan obligations, pleaded guilty in March to a fraud scheme and agreed to cooperate with prosecutors. His plea can be withdrawn if Litvak wins his appeal.
Barclays has also dismissed other securitized debt traders in recent years for potentially unrelated matters.
The SEC said in an administrative case against an asset-backed securities trader that Barclays fired him over so-called parking violations. The bank dismissed one mortgage-bond trader and another resigned last year amid allegations of mismarking of positions, Finra records show. The two agreed in March to be barred from the industry, without admitting or denying guilt, the records show.
