New York sues Barclays for fraud over dark pool

|About: Barclays PLC (BCS)|By:, SA News Editor

"The facts alleged in our complaint show that Barclays (BCS) demonstrated a disturbing disregard for its investors in a systematic pattern of fraud and deceit,” says NY AG Eric Schneiderman. "“Barclays grew its dark pool by telling investors they were diving into safe waters. According to the lawsuit, Barclays’ dark pool was full of predators – there at Barclays’ invitation.”

Contrary to promises made by Barclays to clients, according to the complaint, Barclays never stopped any trader - no matter how predatory - from participating in its dark pool, did not regularly update the ratings of HFT firms monitored by Liquidity Profiling, and "overrode" certain Liquidity Profiling ratings by assigning safe ratings to traders otherwise known to be toxic.

Previously: More on NY's suit against Barclays

Previously: Report: Dark pool case to be filed against Barclays today