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A former Deutsche Bank commodity trader was sentenced to 12 months and one day in prison for “counterfeiting” the gold and silver futures markets between 2008 and 2013.
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 found guilty in September along with Cedric Chanu, another former Deutsche dealer. The couple had faced a maximum of 30 years in prison.
The sentence is part of a case that the DoJ described in 2018 as “the largest futures market action in the department’s history,” following 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 markets through a practice called counterfeiting.
This involves making false orders to create the illusion of a substantial supply or demand, which moves prices. Computers cancel orders before they can be executed, allowing the spoofer to exploit the manipulation for its own benefit. It became illegal as part of the 2010 Dodd-Frank Act.
“Specifically, Vorley placed fraudulent orders that he did not intend to execute to create the false appearance of supply and demand and to induce other traders to make transactions at prices, quantities and hours that they would not otherwise have negotiated “. The Justice Department said in a statement.
Deutsche paid a $ 30 million fine to the Commodity Futures Trading Commission in 2018 for counterfeiting precious metals futures markets.
U.S. regulators have done so in recent years intensified enforcement action against counterfeiting, with authorities charging JPMorgan Chase a $ 920 million fine in October for eight years for giving a false impression of market demand for precious metals and bonds from the U.S. government.
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