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.
The two were found guilty for spoofing precious metals markets from 2008 to 2013. It is an illegal high-frequency trading strategy where bids and offers are placed on an exchanged and then cancelled before they can be filled. The orders are placed with no intention of them ever being filled.
During the hearing, the court heard from another former Deutsche Bank trader who said he was taught to spoof by Vorley and Chanu. “I saw Mr. Vorley and Mr. Chanu do it,” said Liew in his testimony.
