Bloomberg
Citigroup Inc. has sued Gautam Hazarika, a former Singapore-based director in its global markets unit, accusing him of handing confidential information to Deutsche Bank AG before joining the German bank.
Deutsche Bank’s head of corporate flow sales for Asia, excluding Japan, denied the allegations and is today scheduled to ask Singapore’s High Court to set aside an order allowing Citigroup to search his apartment, car and home computer.
Hazarika was in “flagrant breach” of his employment contract and duties to Citigroup by sending e-mails containing trade secrets to Deutsche Bank, Standard Chartered Plc and his personal account, the New York-based lender said in its Nov. 30 lawsuit. Deutsche Bank isn’t a defendant in the Citigroup suit.
Citigroup’s suit comes after Merrill Lynch & Co. sued Deutsche Bank for allegedly raiding its bankers and misappropriating trade secrets last year and Royal Bank of Scotland Group Plc fired its Singapore-based chief currency trader in May last year for sending e-mails allegedly containing confidential data.
The cases highlight the intense rivalry among banks for bankers who can “bring across a decent book of clients,” said Siraj Omar, head of litigation at Premier Law LLC in Singapore, who isn’t involved in the suit. “The idea is to make things as difficult as possible for the bankers who are leaving, which is only logical from the banks’ perspective.”
Citigroup Probe
Citigroup started an investigation after Toby Frei, its head of foreign currency bank sales for Asia Pacific, heard that Hazarika had “given Deutsche Bank everything” when socializing with unidentified officials from the Frankfurt-based lender on Nov. 16, court filings showed.
Hazarika was also exploring a possible position with Standard Chartered, according to the documents.
“There’s no way I can show that the allegations are untrue” unless the Deutsche Bank officials are identified and confirm the statement, Hazarika said in his affidavit. “It may well even have been a joke or a tease.”
Hazarika worked for Citigroup for 15 years, starting in India in 1994 before moving to Singapore in 2002, the court papers showed. He joined Deutsche Bank as the Singapore-based head of corporate flow sales for Asia, excluding Japan, from Citigroup, where he was Asia sales head of transactional foreign exchange, Deutsche Bank said in a Dec. 1 statement.
Citigroup’s Singapore-based spokesman Adam Rahman declined to comment, as did Deutsche Bank’s Mark Bennewith. Hazarika couldn’t immediately be reached for comment.
‘Intimate Knowledge’
Hazarika had access and “intimate knowledge” of confidential information, including customer details and business strategies, Citigroup said in its court filing. The bank said it stands to “lose its competitive edge” if the information leaks out.
Hazarika’s “extensive experience” in transaction banking and foreign exchange will help Deutsche Bank as it increasingly focuses on Asia, Daniel Mamadou, co-head of DCM and Corporate Coverage for Asia, excluding Japan, said in the Dec. 1 statement.
There was “nothing sinister” in the e-mails Hazarika sent to himself nor did the clients’ list sent to Deutsche Bank contain privileged banking information, his court filing shows.
E-mails sent to the personal account were to facilitate working after office hours, Hazarika said in his affidavit.
“In my mind, I had done nothing wrong,” Hazarika said in the papers. “The e-mails I forwarded to my personal e-mail account would not have caused the plaintiff any damage tomorrow, or the day after or at any time in the future.”
Citigroup is represented by Drew & Napier LLC and Tan Rajah & Cheah is acting for Hazarika.
The case is Citicorp Investment Bank (Singapore) Ltd. v Gautam Iswar Hazarika S1008/2009 in the Singapore High Court.
Deutsche Bank’s head of corporate flow sales for Asia, excluding Japan, denied the allegations and is today scheduled to ask Singapore’s High Court to set aside an order allowing Citigroup to search his apartment, car and home computer.
Hazarika was in “flagrant breach” of his employment contract and duties to Citigroup by sending e-mails containing trade secrets to Deutsche Bank, Standard Chartered Plc and his personal account, the New York-based lender said in its Nov. 30 lawsuit. Deutsche Bank isn’t a defendant in the Citigroup suit.
Citigroup’s suit comes after Merrill Lynch & Co. sued Deutsche Bank for allegedly raiding its bankers and misappropriating trade secrets last year and Royal Bank of Scotland Group Plc fired its Singapore-based chief currency trader in May last year for sending e-mails allegedly containing confidential data.
The cases highlight the intense rivalry among banks for bankers who can “bring across a decent book of clients,” said Siraj Omar, head of litigation at Premier Law LLC in Singapore, who isn’t involved in the suit. “The idea is to make things as difficult as possible for the bankers who are leaving, which is only logical from the banks’ perspective.”
Citigroup Probe
Citigroup started an investigation after Toby Frei, its head of foreign currency bank sales for Asia Pacific, heard that Hazarika had “given Deutsche Bank everything” when socializing with unidentified officials from the Frankfurt-based lender on Nov. 16, court filings showed.
Hazarika was also exploring a possible position with Standard Chartered, according to the documents.
“There’s no way I can show that the allegations are untrue” unless the Deutsche Bank officials are identified and confirm the statement, Hazarika said in his affidavit. “It may well even have been a joke or a tease.”
Hazarika worked for Citigroup for 15 years, starting in India in 1994 before moving to Singapore in 2002, the court papers showed. He joined Deutsche Bank as the Singapore-based head of corporate flow sales for Asia, excluding Japan, from Citigroup, where he was Asia sales head of transactional foreign exchange, Deutsche Bank said in a Dec. 1 statement.
Citigroup’s Singapore-based spokesman Adam Rahman declined to comment, as did Deutsche Bank’s Mark Bennewith. Hazarika couldn’t immediately be reached for comment.
‘Intimate Knowledge’
Hazarika had access and “intimate knowledge” of confidential information, including customer details and business strategies, Citigroup said in its court filing. The bank said it stands to “lose its competitive edge” if the information leaks out.
Hazarika’s “extensive experience” in transaction banking and foreign exchange will help Deutsche Bank as it increasingly focuses on Asia, Daniel Mamadou, co-head of DCM and Corporate Coverage for Asia, excluding Japan, said in the Dec. 1 statement.
There was “nothing sinister” in the e-mails Hazarika sent to himself nor did the clients’ list sent to Deutsche Bank contain privileged banking information, his court filing shows.
E-mails sent to the personal account were to facilitate working after office hours, Hazarika said in his affidavit.
“In my mind, I had done nothing wrong,” Hazarika said in the papers. “The e-mails I forwarded to my personal e-mail account would not have caused the plaintiff any damage tomorrow, or the day after or at any time in the future.”
Citigroup is represented by Drew & Napier LLC and Tan Rajah & Cheah is acting for Hazarika.
The case is Citicorp Investment Bank (Singapore) Ltd. v Gautam Iswar Hazarika S1008/2009 in the Singapore High Court.
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