Chinese broker seeks foreign exchange swap in U.S. dollar fund

NEW YORK — A foreign exchange broker seeking to shift dollars for foreign exchange swaps between two U.s. government accounts has sued the U. S. Treasury Department and the New York Federal Reserve over alleged violations of U. s. law, the Financial Crimes Enforcement Network (FinCEN) said Monday.

The New York attorney general’s office has filed a civil suit in federal court seeking to block the transaction from taking place, the agency said in a statement.

The complaint, filed Monday, alleged that a New York broker, named only as “Mr. Wang,” “solicited” about $10,000 in foreign exchange to the New Jersey Fed, the New England Federal Reserve and the Chicago Federal Reserve in exchange for “a U. ersky Dollar” in 2010, the Feds said.

The Fed had no comment on the suit.

The Securities and Exchange Commission said in April it had opened a probe into Wang and said he is the broker charged with money laundering and other violations.