James Vorley, a British citizen who worked as a precious metals trader at Deutsche in London from 2007 to 2015, was sentenced Monday by the Northern District of Illinois. He was convicted in September along with Cédric Chanu, another German ex-trader. The couple faced a maximum of 30 years in prison.
The conviction is part of a case that the DoJ described in 2018 as “the largest futures prosecution in the history of the department”, following charges against Vorley, Chanu and six others.
Vorley and Chanu, who are to be sentenced on June 28, have been found guilty of manipulating the metals markets through a practice called usurpation.
It involves placing bogus orders to create the illusion of substantial supply or demand, causing prices to move. The computers then cancel the orders before they can be executed, allowing the spoofer to exploit the manipulation to their advantage. It became illegal under the Dodd-Frank Act of 2010.
“Specifically, Vorley placed fraudulent orders that he did not intend to execute in order to create the false appearance of supply and demand and to entice other traders to trade at. prices, quantities and times that they otherwise would not have negotiated, ”the United States said. the Justice Department said in a statement.
Deutsche fined the Commodity Futures Trading Commission $ 30 million in 2018 for impersonation in the precious metals futures markets.
In recent years, US regulators have stepped up enforcement action against identity theft, with authorities fining JPMorgan Chase $ 920 million in October for eight years for giving a false impression of market demand in precious metals and US government bonds.