By James Marson and Jenny Strasburg
MOSCOW--Russia's central bank said Tuesday that a Deutsche Bank AG (DBK.XE) employee in Russia manipulated markets by conducting 300 billion rubles ($4.8 billion) of trades with relatives from 2013 to 2015.
The trades generated profit of 255 million rubles for the employee, named as Yury Khilov, and three relatives, central bank official Valery Lyakh told reporters, Interfax news agency reported.
The central bank said in a statement that it uncovered the evidence of manipulation during a joint investigation with the German federal financial regulator. The bank said that it had sent materials from its probe to law-enforcement agencies.
Deutsche Bank said Mr. Khilov was no longer at the company.
"Deutsche Bank has conducted internal investigation on the activities of the former employee and provided the market regulator with its results," the bank said in a statement. Deutsche Bank said it's "working to detect and combat any misconduct activities and will closely cooperate with the authorities on such matters."
The allegations are unrelated to ongoing probes into Deutsche Bank's Russia trading operations and so-called "mirror trades" that the U.S. Justice Department and European regulators have been investigating, and which Deutsche Bank said it's working to resolve.
Mr. Khilov previously oversaw Deutsche Bank's Russia stock-trading operations. He's no longer at the bank. He didn't immediately respond to a request for comment. HisLinkedIn profile says that he left Deutsche Bank in July 2015.
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(END) Dow Jones Newswires
December 20, 2016 08:29 ET (13:29 GMT)
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