The US Securities and Exchange Commission (SEC) announced on Monday that a former Deutsche Bank commodities trader has been sentenced to a year of imprisonment. He was convicted for committing wire fraud.
James Vorley, who was based in the United Kingdom and a precious metals trader at the German bank’s London office, was engaged in a scheme to defraud other traders on the Commodity Exchange Inc., which was a public exchange.
The regulator detailed that Vorley, along with Cedric Chanu and other Deutsche Bank traders, had used deceptive trading tactics like ‘spoofing’ to defraud other market participants.
Vorley was in the center of the scheme, placing fraudulent orders that he did not intend to execute. These fake orders created a false appearance of the supply and demand in the market, allowing the Deutsche bank traders to manipulate prices.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
“Vorley placed fraudulent orders that he did not intend to execute in order to create the false appearance of supply and demand and to induce other traders to transact at prices, quantities and times that they otherwise would not have traded,” the SEC announcement stated.
Though Vorley’s sentencing came recently, he was convicted by a federal jury last September. Additionally, Chanu was waiting for his sentencing, which is scheduled for the end of this month.
Rising Frauds Is a Concern
Meanwhile, financial frauds have skyrocketed in the retail space that has cost traders millions of dollars. Recently, the SEC charged a Florida-based dentist for his involvement in three separate fraudulent schemes.
Furthermore, the financial market regulator is heavily compensating whistleblowers for any good information that leads to the bust of organized financial frauds.