From Dishonesty to Disaster: The Reasons and Consequences of Rogue Traders’ Fraudulent Behavior

Abstract

Purpose — The purpose of this chapter is to study the pattern of rogue trading, paying special attention to the aspects of the dishonest behavior of perpetrators.Design/methodology/approach — The chapter discusses selected cases of rogue trading that received the largest coverage by the mass media.Findings — No unique pattern of rogue trading schemes can be identified; however, certain similarities can be brought up based on the discussed cases. There are many aspects of dishonesty involved in fraudulent trading besides illicitness of unauthorized trading as such.Research limitations/implications — The chapter is based largely on a literature review and available data on the instances of rogue trading; probably, there is a vast amount of rogue trading cases undisclosed in order to draw a bigger picture.Originality/value — We apply the framework of white-collar crime process by McKay, Stevens, and Fratzl (2010) in order to clarify whether rogue trading schemes match the development of a typical white-collar crime. Conclusions are built on the analysis of several cases.

Citation

Kantšukov, M. and Medvedskaja, D. (2013), "From Dishonesty to Disaster: The Reasons and Consequences of Rogue Traders’ Fraudulent Behavior", Vissak, T. and Vadi, M. (Ed.) (Dis)Honesty in Management (Advanced Series in Management, Vol. 10), Emerald Group Publishing Limited, Bingley, pp. 147-165. https://doi.org/10.1108/S1877-6361(2013)0000010011

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