Kevin Cassidy, the former chief executive officer of Optionable Inc., will plead guilty to his role in a scheme to hide millions of dollars of losses at the Bank of Montreal, a clerk in Manhattan federal court said today.
The case stems from C$680 million ($690.5 million) of pretax commodity-trading losses the bank announced in April 2007. Those losses grew to C$853 million for the fiscal year, paring profit by C$440 million. Cassidy was charged with fraud in 2008 for helping a former trader at the bank conceal the losses.
Cassidy, an ex-convict who hid his criminal record, helped former trader David Lee hide commodity losses from the bank to win business for Optionable, according to prosecutors. Optionable was a brokerage firm focusing on energy derivatives
Cassidy was sentenced to 30 months in prison for credit-card fraud in 1997 and six months for income-tax evasion in 1993, court records show.
The case is U.S. v. Cassidy, 08-CR-1101, U.S. District Court, Southern District of New York (Manhattan).