Dec 9 (Reuters) – A former dealer at JPMorgan Chase & Co and Credit score Suisse (CSGN.S) was convicted of fraud in U.S. court docket on Friday for scheming to control treasured metals futures by a buying and selling tactic referred to as spoofing, prosecutors mentioned.
A Chicago jury discovered Christopher Jordan, 51, responsible of wire fraud affecting a monetary establishment after an eight-day trial wherein prosecutors mentioned he engaged in spoofing to defraud different market contributors.
The tactic includes putting after which rapidly canceling orders to falsely create the impression of excessive demand or provide.
Jordan traded treasured metals at JPMorgan from March 2006 till December 2009, and at Credit score Suisse from March 2010 till August 2010, in line with his indictment. Prosecutors mentioned he positioned misleading orders for silver futures and lied about it to investigators.
Jordan’s lawyer, James Benjamin, known as the decision disappointing and mentioned Jordan is “a great and honorable man who did his job in good religion.”
Jordan was indicted in 2019 together with former JPMorgan world treasured metals desk head Michael Nowak, treasured metals dealer Gregg Smith and salesperson Jeffrey Ruffo.
The case was the U.S. Justice Division’s most aggressive thus far concentrating on spoofing, charging the 4 defendants with violating the racketeering statute, a legislation enacted in 1970 to take down the mafia.
Nowak, Smith and Ruffo had been acquitted of racketeering and conspiracy, although Nowak and Smith had been convicted on a number of different prices at a jury trial in August. Prosecutors then dropped racketeering and conspiracy prices in opposition to Jordan.
JPMorgan agreed in 2020 to pay greater than $920 million and admitted to wrongdoing to settle with the Justice Division and the Commodity Futures Buying and selling Fee over its merchants’ conduct.
Reporting by Jody Godoy in New York; Modifying by Sandra Maler
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