A former commodities trader at Deutsche Bank has been sentenced to 12 months and one day in prison for “spoofing” the gold and silver futures markets between 2008 and 2013.
James Forley, a British national who worked as a precious metals dealer for Deutsche in London from 2007 until 2015, was sentenced on Monday by the Northern District of Illinois. He was convicted in September along with Cedric Chano, another former trader at Deutsche. The couple faced a maximum of 30 years in prison.
Judgment is part of the case that Described by the Ministry of Justice in 2018 as the “largest futures market criminal enforcement action in the administration’s history,” following charges brought against Forli, Chano and six other individuals.
Forli and Chano, who are due to be sentenced on June 28, were convicted of manipulating the metals markets through a practice referred to as plagiarism.
This involves placing false orders to create the illusion of a large supply or demand, which drives prices. Computers then cancel the commands before they are executed, allowing the scammer to exploit the manipulation for his own gain. It became illegal as part of the Dodd-Frank Act of 2010.
“Specifically, Forli placed fraudulent orders that he did not intend to execute in order to create the false appearance of supply and demand and to induce other traders to transact at prices, quantities and times they would not otherwise trade,” the Department of Justice said in a statement.
Deutsche paid a $30 million fine to the Commodity Futures Trading Commission in 2018 for rigging the precious metals futures markets.
Regulators in the United States in recent years Intensify enforcement action against plagiarismIn October, authorities fined JPMorgan $920 million for eight years for giving a false impression of market demand for precious metals and US government bonds.