Month: September 2020

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Article: JPMorgan pays $920 million to settle spoofing claims

Article - Media, Publications

JPMorgan pays $920 million to settle spoofing claims

Bloomberg News, 29 September 2021

The New York-based lender will pay the biggest monetary penalty ever imposed by the CFTC, including a $436.4 million fine, $311.7 million in restitution and more than $172 million in disgorgement, according to a statement from the Commodity Futures Trading Commission.

The CFTC said its order will recognize and offset restitution and disgorgement payments made to the Department of Justice and Securities and Exchange Commission.

The accord ends a criminal investigation of the bank that has led to a half-dozen employees being charged for allegedly rigging the price of gold and silver futures for more than eight years. Two have entered guilty pleas, and four others are awaiting trial. Continue reading “Article: JPMorgan pays $920 million to settle spoofing claims”

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Article: CFTC & SEC: JP Morgan manipulated Treasuries market during flash crash period

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CFTC & SEC: JP Morgan manipulated Treasuries market during flash crash period

dan.barnes, 29 September 2020

US market regulators the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have fined JP Morgan over US$920 million in penalties and disgorgements for manipulative trading, or spoofing, in the US Treasuries, US Treasuries futures, and commodity markets, between 2009 and 2016. The CFTC noted that the bank also did not respond to warnings from the regulators or the CME and at points misled the investigation.

The bank’s behaviour during this period raises questions that neither the bank nor the regulators are prepared to answer, regarding its effect on market stability.

During the period in question, on 15 October 2014, the US Treasury market experienced a ‘flash crash’, which saw the 10-year treasury rate fall 34 basis points over a 10-minute period from 2.2% to 1.86%, a 52-week low, before rebounding for the end of day. Treasury futures volume reached nearly 1.6 million trades, an all-time record, having only broken the 800,000 trades a day barrier three times before.

A similar flash crash in the US equities markets in 2010 was attributed by the CFTC to manipulative trading by a lone trader on the CME via its E-mini S&P 500 futures.
Pinto
When asked whether JP Morgan’s activity had been reviewed as a potential trigger of the 2014 flash crash, both the SEC and CFTC declined to comment. JP Morgan also declined to comment.

The press office of the CME, which is also the market for US Treasury futures, declined to comment on how JP Morgan had spoofed on its markets for eight years without being stopped.

The CFTC found that from at least 2008 through 2016, JP Morgan, “through numerous traders on its precious metals and Treasuries trading desks, including the heads of both desks, placed hundreds of thousands of orders to buy or sell certain gold, silver, platinum, palladium, Treasury note, and Treasury bond futures contracts with the intent to cancel those orders prior to execution.”

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Article: JP Morgan settles massive market manipulation case

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JP Morgan settles massive market manipulation case

James Langton, 29 September 2020

Wall street giant JPMorgan Chase & Co. is paying US$920 million to resolve allegations that it engaged in manipulative trading in the U.S. Treasuries market and precious metals futures markets.

The firm entered a deferred prosecution agreement with the U.S. Department of Justice to resolve wire fraud charges stemming from alleged illegal trading in precious metals futures, U.S. Treasury futures, and in the cash market for U.S. Treasury notes and bonds.

Under the agreement, JPMorgan will pay over US$920 million, including a criminal monetary penalty, disgorgement and victim compensation.

According to the justice department, between March 2008 and August 2016, numerous traders on JPMorgan’s precious metals desks in New York, London and Singapore placed spoofing orders for precious metals futures.

A couple of those traders have pleaded guilty to criminal charges and several others are still facing charges.

Traders on the firm’s U.S. Treasuries desks in New York and London also engaged in spoofing in U.S. Treasuries markets.

Portions of the criminal penalty and disgorgement are to be credited against payments to be made to the U.S. Commodity Futures Trading Commission and the U.S. Securities Exchange Commission under separate agreements with the regulators.

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Article: Spruce Point Capital Management Releases Report and Strong Sell Research Opinion on Sunnova Energy International Inc. (NYSE: NOVA)

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Spruce Point Capital Management Releases Report and Strong Sell Research Opinion on Sunnova Energy International Inc. (NYSE: NOVA)

Spruce Point Capital Management, 29 September 2020

According to the complaint, throughout the Class Period, Defendants misrepresented and concealed that (1) ACM Research’s revenues and profits were diverted to undisclosed related parties, and (2) consequently, the company materially overstated its revenues and profits.

Investors allegedly began to learn the truth on Oct. 8, 2020, when J Capital Research published a report entitled “Dirty business,” bringing ACM Research’s reported financials into serious question.
More specifically, J Capital concludes ACM Research is a fraud, over-reporting both revenue and profit. According to the report, “ACMR reports industry-beating gross margins of 47%” but “[w]e believe the real gross margins are half at the best.” J Capital also concludes revenues are overstated by 15-20%, undisclosed related parties are diverting revenue and profit from the company, the key means by which ACMR tunnels over-reported profit out of the company may be through about $20 million in overstated inventory and through cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
Continue reading “Article: Spruce Point Capital Management Releases Report and Strong Sell Research Opinion on Sunnova Energy International Inc. (NYSE: NOVA)”

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Article: The Hidden Past At Enron Of Sunnova’s CEO, And Insights Into The Company’s Aggressive Current Financial Reporting And Accounting

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The Hidden Past At Enron Of Sunnova’s CEO, And Insights Into The Company’s Aggressive Current Financial Reporting And Accounting

Ben Axler, 29 September 2020

Spruce Point Capital Management Releases Report and Strong Sell Research Opinion on Sunnova Energy International Inc. (NYSE: NOVA). Believes Evidence Clearly Shows that Sunnova’s Senior Management has Obfuscated Ties to Past Failures and Fraud in SEC Filings, Including CEO William Berger’s Tenure at Enron. Contends Sunnova is Being Promoted As A Hot Play On Solar Energy, but In Reality Is A Specialty Finance Business Without Meaningfully Differentiated Offerings

Shows that Sunnova is Overleveraged and Dependent on Aggressive Financial Presentation, Accounting and Non-GAAP Metrics Overly Flattering Its Performance. Underscores that a Former Sunnova Executive and Industry Experts Agree that the Company Has an Undifferentiated and Misunderstood Business Model.

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Article: JPMorgan to pay $920 million for manipulating precious metals, treasury market

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JPMorgan to pay $920 million for manipulating precious metals, treasury market

Abhishek Manikandan, Michelle Price, 29 September 2020

(Reuters) – JPMorgan Chase & Co has agreed to pay more than $920 million and admitted to wrongdoing to settle federal U.S. market manipulation probes into its trading of metals futures and Treasury securities, the U.S. authorities said on Tuesday.

The landmark multi-agency settlement lifts a regulatory shadow that has hung over the bank for several years and marks a signature victory for the government’s efforts to clamp down on illegal trading in the futures and precious metals market.

JPMorgan will pay $436.4 million in fines, $311.7 million in restitution and more than $172 million in disgorgement, the Commodity Futures Trading Commission (CFTC) said on Tuesday, the biggest-ever settlement imposed by the derivatives regulator.

Between 2008 and 2016, JPMorgan engaged in a pattern of manipulation in the precious metals futures and U.S. Treasury futures market, the CFTC said. Traders would place orders on one side of the market which they never intended to execute, to create a false impression of buy or sell interest that would raise or depress prices, according to the settlement.

This manipulative practice, which is designed to create the illusion of demand, or lack thereof, is known as “spoofing.”

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Article: JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators

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JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators

Sergei Klebnikov,  29 September 2020

JPMorgan Chase will pay a record $920 million to resolve a criminal investigation by three federal agencies over its role in the alleged manipulation of precious metal and Treasury markets, federal regulators said on Tuesday.

JPMorgan agreed to a settlement that resolves investigations by the Justice Department, Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

As part of the deal, the bank will admit to wrongdoing and pay a record fine of $920 million, according to a statement from the CFTC on Tuesday. Continue reading “Article: JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators”

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Article: U.S. Clamps Down on Market Manipulation Known as Spoofing as Two Former Traders at Deutsche Bank are Found Guilty

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U.S. Clamps Down on Market Manipulation Known as Spoofing as Two Former Traders at Deutsche Bank are Found Guilty

SWFI, 28 September 2020

A Chicago federal jury found two former employees of Deutsche Bank AG guilty of fraud charges for their respective roles in fraudulent and manipulative trading practices involving publicly-traded precious metals futures contracts. This case was investigated by the FBI’s New York Field Office. According to the DOJ press release, “After a two-week trial, James Vorley,

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Article: 5 things you should do if you suspect you were affected by the DoorDash data breach

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5 things you should do if you suspect you were affected by the DoorDash data breach

Megan Leonhardt, 27 September 2019

DoorDash, a popular food delivery app, announced Thursday that hackers accessed the company’s data system and stole the personal information of approximately 4.9 million customers, restaurants and delivery workers — including driver’s license numbers, partial bank and credit card information, as well as names and addresses.

Specifically, DoorDash said in a blog post that customers who signed up for the delivery app before April 5, 2018, potentially had a slew of personal details compromised such as names, email addresses, phone numbers and order histories, as well as the last four digits of debit and credit cards. Full credit card information was not accessed.
Continue reading “Article: 5 things you should do if you suspect you were affected by the DoorDash data breach”

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Article: Two Ex- Deutsche Bank traders found guilty of spoofing gold and silver markets

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Two Ex- Deutsche Bank traders found guilty of spoofing gold and silver markets

Neils Christensen, 27 September 2020

U.S. authorities, in an effort to clean up trading activity in the precious metals markets, won a major victory Friday after two former employees of Deutsche Bank traders were found guilty of manipulating gold and silver prices.

Friday, after a two-week court case a federal judge in Chicago found James Vorley, 42, of the United Kingdom, and Cedric Chanu, 40, of France and the United Arab Emirates, were convicted of three counts and seven counts, respectively, of wire fraud affecting a financial institution.

“Today’s jury verdict shows that those who seek to manipulate our public financial markets through fraud will be held accountable by juries and the department,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division in a press release. Continue reading “Article: Two Ex- Deutsche Bank traders found guilty of spoofing gold and silver markets”

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Article: Former Deutsche Bank traders convicted of trying to manipulate gold and silver prices

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Former Deutsche Bank traders convicted of trying to manipulate gold and silver prices

Bloomberg, 26 September 2020

Prosecutors behind a sweeping US crackdown on market “spoofing” scored a big win on Friday when former Deutsche Bank traders Cedric Chanu and James Vorley were convicted of fraud for manipulating gold and silver prices.

A federal jury in Chicago, after three days of deliberations, concluded Mr Chanu and Mr Vorley made bogus trade orders between 2008 and 2013 to illegally influence precious metals prices. The week-long trial was the latest US prosecution of a “spoofing” case since the global market “flash crash” in 2010. Continue reading “Article: Former Deutsche Bank traders convicted of trying to manipulate gold and silver prices”

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Article: Ex-Deutsche Bank Gold Traders Found Guilty in Spoofing Trial

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Ex-Deutsche Bank Gold Traders Found Guilty in Spoofing Trial

Bloomberg, 26 September 2020

Prosecutors behind a sweeping U.S. crackdown on market “spoofing” scored a big win Friday when former Deutsche Bank AG traders Cedric Chanu and James Vorley were convicted of fraud for manipulating gold and silver prices.

A federal jury in Chicago, after three days of deliberations, concluded Chanu and Vorley made bogus trade orders between 2008 and 2013 to illegally influence precious-metals prices. The weeklong trial was the latest U.S. prosecution of a “spoofing” case since the global market “flash crash” in 2010. Continue reading “Article: Ex-Deutsche Bank Gold Traders Found Guilty in Spoofing Trial”

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Article: Ex-Deutsche Bank Traders Convicted of Wire Fraud in Market-Manipulation Case

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Ex-Deutsche Bank Traders Convicted of Wire Fraud in Market-Manipulation Case

Dave Michaels, 25 September 2020

A jury on Friday convicted two former Deutsche Bank employees accused of manipulating precious-metals prices, boosting prosecutors’ efforts to punish traders for conduct that has cost banks millions of dollars in civil and criminal fines.

The verdict represents prosecutors’ second win in trials over conduct known as spoofing, a rapid-fire manipulation tactic that involves sophisticated detective work to expose. Continue reading “Article: Ex-Deutsche Bank Traders Convicted of Wire Fraud in Market-Manipulation Case”

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Article: NNOX FRAUD ALERT: HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Nano-X Imaging (NNOX) Investors to Contact Its Attorneys: Securities Fraud Case Filed, Hedge Funds Call NNOX “Theranos 2.0” and “Garbage”

Article - Media, Publications

NNOX FRAUD ALERT: HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Nano-X Imaging (NNOX) Investors to Contact Its Attorneys: Securities Fraud Case Filed, Hedge Funds Call NNOX “Theranos 2.0” and “Garbage”

GLOBE NEWSWIRE, 23 September 2020/em>

The complaint alleges that throughout the Class Period, Defendants concealed that Nano-X’s: (1) commercial agreements and customers were fabricated; (2) statements regarding its novel Nanox System were misleading; and (3) Nano-X’s submission to the FDA admitted the Nanox System was not original.

Investors allegedly began to learn the truth on Sept. 15, 2020, when Citron Research published a report accusing Nano-X of conducting “the most blatant stock promotion we have seen in years.” Citron challenged Nano-X’s claimed new innovative technology, stating “we have not even seen proof of the product and have only seen a mockup drawing of what this machine is supposed to look like.” Citron also alleged that Nano-X’s commercial agreements “appear to be no more than fake customers.” Continue reading “Article: NNOX FRAUD ALERT: HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Nano-X Imaging (NNOX) Investors to Contact Its Attorneys: Securities Fraud Case Filed, Hedge Funds Call NNOX “Theranos 2.0” and “Garbage””

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Article: JPMorgan is set to pay US$1B in record spoofing penalty

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JPMorgan is set to pay US$1B in record spoofing penalty

Ben Bain, Tom Schoenberg and Matt Robinson, 23 September 2020

JPMorgan Chase & Co. is poised to pay close to US$1 billion to resolve market manipulation investigations by U.S. authorities into its trading of metals futures and Treasury securities, according to three people with knowledge of the matter.

The potential record for a settlement involving alleged spoofing could be announced as soon as this week, said the people who asked not to be named because the details haven’t yet been finalized. The accord would end probes by the Justice Department, the Commodity Futures Trading Commission and the Securities and Exchange Commission into whether traders on JPMorgan’s precious metals and treasuries desks rigged markets, two of the people said.

A penalty approaching US$1 billion would far exceed previous spoofing-related fines. It would also be on par with sanctions in many prior manipulation cases, including some brought several years ago against banks for allegedly rigging benchmark interest rates and foreign exchange markets.

Spoofing typically involves flooding derivatives markets with orders that traders don’t intend to execute to trick others into moving prices in a desired direction. The practice has become a focus for prosecutors and regulators in recent years after lawmakers specifically prohibited it in 2010. While submitting and then canceling orders isn’t illegal, it is unlawful as part of a strategy intended to dupe other traders.

It couldn’t be determined whether New York-based JPMorgan will face additional Justice Department penalties in court. Previous spoofing cases have been resolved without banks or trading firms pleading guilty to criminal charges. However, when prosecutors filed cases last year against individual JPMorgan traders they painted a grave picture of its precious metals desk, saying it operated as an illicit enterprise within the bank for almost a decade.

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