Ex-Deutsche Bank Traders Charged in Expanding Spoofing Probe

Two former Deutsche Bank AG employees were charged with fraudulent and manipulative trading involving precious metals futures contracts through a practice known as spoofing as a federal probe on illegal market practices continues to widen.

James Vorley, 38, of the U.K., and Cedric Chanu, 39, of France and the United Arab Emirates, were indicted Tuesday for conspiracy and wire fraud by a grand jury in Chicago. The two are accused of engaging in a multiyear scheme to defraud other traders on the Commodity Exchange Inc., a venue run by the Chicago Mercantile Exchange Group.

Prosecutors said they worked with another Deutsche Bank trader, David Liew, to place fraudulent orders that they didn’t intend to execute to create a false sense of supply and demand and induce other traders to enter into transactions they wouldn’t have otherwise made.

Roger A. Burlingame, Vorley’s lawyer, said the charges are based on a “misguided interpretation of manual trade data.”

“Mr. Vorley’s trades were perfectly legal, were reviewed by supervisors, compliance and external regulators, and fell squarely within accepted market practice,” Burlingame said in an email. “He will voluntarily travel from his home in London to Chicago to fight the case, and we expect him to be completely vindicated.”

No attorney was listed for Chanu in court records. Attorneys who represented Chanu in a Commodity Futures Trading Commission lawsuit didn’t immediately respond to a request for comment.

Source: Bloomberg

One Response
  1. July 30, 2018

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