Mismarking in securities valuation occurs when the value assigned to securities does not reflect what they are actually worth, due to intentional fraudulent mispricing. It misleads investors and fund executives about the worth of a managed securities portfolio, misrepresenting performance, and allows a trader who engages in it to obtain a higher bonus calculated from that portfolio's apparent performance.
Facts
Typical PenaltyA Toronto Dominion Bank trader was fined 750,000 pounds ($1.16 million) by the United Kingdom's Financial Services Authority in 2010 for mismarking. 1 Notable ExampleIn 2007, two Credit Suisse traders pleaded guilty to mismarking their securities positions to overvalue them by three billion dollars, in order to avoid losses and increase their year-end bonuses. 1 Jurisdiction VariationA trader in Dubai was banned for six years from performing any functions in connection with the provision of financial services after a mismarking case, showing enforcement reaching beyond the United States and United Kingdom. 1 Classification
Offense GradeMinor or Summary Offense 1 Connections
Has Offense Grade
Entity-backed identity for the offense-grade enum value this offense already carries, resolved to a crime concept by an explicit value-to-entity map (phase 3 bucket conversion, docs\design_entity_backed_browse_buckets_20260928.md). The offense-grade fact itself stays on the offense unchanged.
In the Other Atlases
- Also in Geography Atlas: Europe, found in there.
- Also in Geography Atlas: North America, found in there.
Sources
1. Mismarking (Wikipedia)
Wikipedia, Notable cases section, Credit Suisse 2007
Two Credit Suisse traders pleaded guilty to mismarking their securities positions to overvalue them by $3 billion, avoid losses, and increase their year-end bonuses.
Wikipedia, Notable cases section, Toronto Dominion Bank trader 2010
fined £750,000 ($1.16 million) by the FSA
Wikipedia, Notable cases section, Dubai trader 2016
banned for six years from performing any functions in connection with the provision of financial services
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