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A former Deutsche Bank commodity trader was sentenced to 12 months and one day in jail for “defrauding” the gold and silver futures market between 2008 and 2013.
James Vorley is a British citizen who worked as a precious metals trader at Deutsche Bank in London from 2007 to 2015. He was sentenced on Monday in the Northern District of Illinois. He and Cedric Chanu, another former German trader, were convicted in September. The couple face up to 30 years in prison.
Sentencing is part of the case Described by the U.S. Department of Justice in 2018 As “the largest futures market criminal enforcement action in the department’s history,” it follows charges against Vorley, Chanu and six others.
Vorley and Chanu, who are scheduled to be sentenced on June 28, were convicted of manipulating the metal market through a practice called deception.
This involves placing false orders to create the illusion of large supply and demand, thereby affecting prices. The computer then cancels the order before it is executed, allowing the fraudster to manipulate it for personal gain. As part of the 2010 Dodd-Frank Act, it became illegal.
“Specifically, Wally placed fraudulent orders that he did not intend to execute in order to create an illusion of supply and demand, and to induce other traders to trade at prices, quantities, and times that they would not otherwise trade,” the U.S. Department of Justice stated in a statement. The statement said.
Deutsche Bank paid a fine of US$30 million to the Commodity Futures Trading Commission for fraud in the precious metals futures market in 2018.
U.S. regulators in recent years Strengthen enforcement actions against fraudIn October, the authorities imposed a fine of US$920 million on JPMorgan Chase for eight years because it gave a wrong impression of market demand for precious metals and US government bonds.
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