US Federal Court Orders Trader to Pay Manipulative Scheme Penalties
- Final judgments and consent orders have been issued against James Vorley and Cedric Chanu.
- A civil monetary penalty of $150,000 is imposed on each defendant.
The US Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) announced on Thursday that a judge of the US District Court for the Northern District of Illinois imposed trading bans on commodity traders and ordered them to pay penalties for engaging in a manipulative scheme.
According to the press release, Judge Steven C. Seeger issued final judgments and consent orders against James Vorley and Cedric Chanu, former precious metals traders, for spoofing and engaging in a deceptive or manipulative scheme.
Each defendant faces a civil monetary penalty of $150,000 and a five-year ban from trading with any registered entity or registering with the CFTC in any capacity, as well as an order to cease and desist from violating the CEA, as alleged, where the CME Group collaborated in the investigation.
What Happened?
The orders reveal that, as of July 2011, Vorley and Chanu employed at Bank A, placed orders for gold, silver, platinum or palladium futures contracts they wanted to be filled (genuine orders) and simultaneously entered orders on the other side of the market for the same contract that they intended to cancel before execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term (spoof orders).
By placing the spoof orders, Vorley and Chanu intentionally or recklessly sent market participants signals of greater supply or demand to create the impression that the price would move up or down and trick market participants into executing orders that they placed on the opposite side of the market.
“This enforcement action demonstrates the CFTC’s commitment to aggressively pursuing individuals who spoof in our markets. As this case shows, we will continue to work vigorously to hold individuals accountable, and not just the companies that employ them, for misconduct in our markets,” Vincent McGonagle, the Acting Director of Enforcement at the CFTC, pointed out.
Recently, the CFTC filed a civil enforcement action to charge four operators for running a $44 million Bitcoin Ponzi scheme. Dwayne Golden of Florida, Jatin Patel of India, Marquis Egerton of North Carolina and Gregory Aggesen of New York were charged with fraud for operating Ponzi schemes involving Bitcoin, for fraudulently soliciting more than $44 million of investments, and for misappropriating millions of dollars.
The US Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) announced on Thursday that a judge of the US District Court for the Northern District of Illinois imposed trading bans on commodity traders and ordered them to pay penalties for engaging in a manipulative scheme.
According to the press release, Judge Steven C. Seeger issued final judgments and consent orders against James Vorley and Cedric Chanu, former precious metals traders, for spoofing and engaging in a deceptive or manipulative scheme.
Each defendant faces a civil monetary penalty of $150,000 and a five-year ban from trading with any registered entity or registering with the CFTC in any capacity, as well as an order to cease and desist from violating the CEA, as alleged, where the CME Group collaborated in the investigation.
What Happened?
The orders reveal that, as of July 2011, Vorley and Chanu employed at Bank A, placed orders for gold, silver, platinum or palladium futures contracts they wanted to be filled (genuine orders) and simultaneously entered orders on the other side of the market for the same contract that they intended to cancel before execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term (spoof orders).
By placing the spoof orders, Vorley and Chanu intentionally or recklessly sent market participants signals of greater supply or demand to create the impression that the price would move up or down and trick market participants into executing orders that they placed on the opposite side of the market.
“This enforcement action demonstrates the CFTC’s commitment to aggressively pursuing individuals who spoof in our markets. As this case shows, we will continue to work vigorously to hold individuals accountable, and not just the companies that employ them, for misconduct in our markets,” Vincent McGonagle, the Acting Director of Enforcement at the CFTC, pointed out.
Recently, the CFTC filed a civil enforcement action to charge four operators for running a $44 million Bitcoin Ponzi scheme. Dwayne Golden of Florida, Jatin Patel of India, Marquis Egerton of North Carolina and Gregory Aggesen of New York were charged with fraud for operating Ponzi schemes involving Bitcoin, for fraudulently soliciting more than $44 million of investments, and for misappropriating millions of dollars.