A former Deutsche Bank trader was sentenced to prison in the ‘spoofing’ case
A former Deutsche Bank commodity trader was sentenced to 12 months and one day in prison between 2008 and 2013 for “falsifying” future gold and silver markets.
James Vorley, a British citizen who worked as a seller of precious metals from Deutsche London in 2007 to 2015, was punished Monday in the Northern District of Illinois. Cedric Chanu was found guilty in September along with another former Deutsche shopkeeper. The couple was sentenced to up to 30 years in prison.
Penalty cases are part of a case The DoJ described it in 2018 being “the largest criminal enforcement action in the future market in the history of the department,” following allegations against Vorley, Chanu and six other people.
Vorley and Chanu, who were convicted on June 28, were convicted of manipulating the metal markets through a practice called spoofing.
This leads to making false orders to create the illusion of a significant supply or demand, which drives up prices. The computers then cancel the commands before they run, exploiting the spoofer’s manipulation for their own gain. It became illegal under the 2010 Dodd-Frank Act.
“Specifically, Vorley placed fraudulent orders that he did not intend to carry out to create a false image of supply and demand and to cause trades at prices, quantities, and times that other traders would not negotiate.” The Department of Justice said in a statement.
Deutsche paid a $ 30 million fine to the Commodity Futures Trading Commission in 2018 for counterfeiting in future precious metals markets.
In recent years, US regulators increased enforcement measures against spoofing, authorities imposed a $ 920 million fine on JPMorgan Chase in October for eight years, giving a false impression of market demand for precious metals and U.S. government bonds.