RBC sanctioned in New York court in stock-manipulation case

A Royal Bank of Canada sign is seen in downtown Toronto in this March 3, 2011, file photo....

A Royal Bank of Canada sign is seen in downtown Toronto in this March 3, 2011, file photo. (REUTERS/Mark Blinch/Files)

Jean-Francois Cloutier, QMI Agency

, Last Updated: 12:40 PM ET

MONTREAL — RBC withheld documents that could shed light on alleged "massive" fraud at its subsidiaries in the Cayman Islands and the Bahamas, QMI Agency has learned.

U.S. District Court Judge Alvin K. Hellerman ordered RBC to produce the missing documents and pay lawyer's fees, according to a decision handed down on March 28. Court documents obtained by QMI show that Canada's biggest bank failed to deliver all documents requested by the U.S. Commodity Futures Trading Commission (CFTC).

The Washington D.C. regulatory body guards against fraud in the derivatives market.

"I find that the conduct of the bank and its lawyers is punishable under the law," Hellerman ruled. "RBC Royal Bank has not complied with my order of December 18, 2013, and attempted to justify its retention of documents using arguments I have already rejected."

Hellerman's ruling is part an ongoing CFTC lawsuit against RBC for a "multi-hundred million dollar" case of market manipulation that allegedly took place "from at least June 2007 to May 2010."


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