Two former bank traders were charged with one count of conspiracy to commit wire fraud and one count of wire fraud. The traders were accused of engaging in a multiyear spoofing scheme.
According to the indictment in the indictment, the traders participated in a longstanding conspiracy to defraud other traders on the Commodity Exchange, Inc. The traders, in concert with several co-conspirators, allegedly deceived other traders by placing orders that they did not intend to carry out. The DOJ claimed that the purpose of the conspiracy was to create and disseminate false information pertaining to supply or demand, with the intent of inducing other traders into "trading precious metals futures contracts at prices, quantities, and times that they would not have otherwise."
One alleged co-conspirator pled guilty to various charges in June 2017 and is cooperating with law enforcement.
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