Posted on 08/10/2022 4:19:40 PM PDT by ameribbean expat
CHICAGO (BLOOMBERG) - The former head of the JPMorgan Chase & Co precious-metals business and his top gold trader were convicted in Chicago on charges they manipulated markets for years, handing the United States government a win in its long crackdown on bogus "spoofing" orders.
Michael Nowak and Gregg Smith were found guilty on Wednesday (Aug 10) by a federal jury after a three-week trial and more than eight days of deliberations. Prosecutors presented evidence that included detailed trading records, chat logs and testimony by former co-workers who "pulled back the curtain" on how Nowak and Smith moved precious-metals prices up and down for profit from 2008 to 2016.
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Nowak and Smith will be sentenced next year. Each faces decades in prison, though it may be far less. Two Deutsche Bank traders convicted of spoofing in 2020 were each sentenced to a year in prison.
(Excerpt) Read more at straitstimes.com ...
WOW!
Someone call William Regain fast!!
Devain
Who could have guess this?? Common knowledge for years. Wake me when top brass goes to prison.
So 2 low level desk jockeys might - repeat: MIGHT go to jail. JPM will pay a fine. And it wont stop.
If you are a big trader like these guys were, you can move the futures market up or down a few cents and make a quick profit in your position. There is no way trades like this can substantially alter the market price over the long term.
It looks like a weak case by the DOJ over something called spoofing.
Spoofing is where the trader puts an order in for X at whatever price and then backs out.
Other traders see the price position and react accordingly.
The three guys looking at jail time say is standard operating procedure from everybody in the business.
Apparently after Dodd/Frank its a no no.
Actually you can move stuff much more than that, even with $1m trades.
if someone with lots of money wanted to manipulate the market, or even it they were just trading it could seem that way.
“If you are a big trader like these guys were, you can move the futures market up or down a few cents and make a quick profit in your position. There is no way trades like this can substantially alter the market price over the long term.”
The DOJ caught a couple of lower level mice, on lower charges from the racketeering & conspiracy charges they were trying to get.
Big whoop.
There is no way trades like this can substantially alter the market price over the long term.
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They have substantially altered the market. The precious metals market is completely controlled by the criminal banks that run the Comex.
This is your typical low level prosecution, so they big boys can keep manipulating at will. They also had the blessing of the acting CFTC commissioner.
Exactly.
Common knowledge for years.
With gold under $1,800 and inflation where it is? Totally manipulated.
Gold should be way above $2,000, if not above $2,300.......
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