CORRECTED: Ex-Deutsche Bank traders fined $150k for spoofing

Rick Steves

The original title “Imprisoned Ex-Deutsche Bank Traders Fined $150K for Spoofing” was incorrect as the defendants appealed their convictions and are currently free on bail.

The U.S. District Court for the Northern District of Illinois 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.

Judge Steven C. Seeger ordered a $150,000 civil monetary penalty on each defendant, a five-year ban from trading on or subject to the rules of any registered entity, and from registering with the CFTC in any capacity.

The defendants have agreed to settle without admitting or denying the charges against them.

Spoofing on COMEX gold, silver, platinum, and palladium futures

The case stems from a CFTC complaint filed against James Vorley and Cedric Chanu on January 26, 2018. According to the regulator, from approximately July 2011 through July 2013, Vorley and Chanu each placed orders for COMEX gold, silver, platinum, or palladium futures contracts that they wanted to get filled (genuine orders) and entered orders for the same contract on the opposite side of the market that they intended to cancel before execution (spoof orders).

The spoof orders were proof that Vorley and Chanu intentionally or recklessly sent market participants signals of greater supply or demand to create the misimpression that the price would move up or down and trick market participants to transact on smaller, genuine orders that they placed on the opposite side of the market, the CFTC explained. The defendants’ conduct constituted spoofing and a deceptive or manipulative scheme.

CFTC Acting Director of Enforcement Vincent McGonagle, said: “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.”

James Vorley and Cedric Chanu were precious metals traders at Deutsche Bank in London and, in 2021, they were each sentenced by a federal jury in the Northern District of Illinois to one year and one day in prison for their fraudulent trades.

Neither Mr. Chanu nor Mr. Vorley served the sentence since the district court ordered them free on bail pending their appeal of their convictions, which remains pending.

They placed numerous fraudulent precious metal orders on exchanges in New York, Singapore, and Hong Kong and canceled them just before execution.

Deutsche Bank agreed to pay more than $130 million to settle charges concerning spoofing cases as well as for paying bribes to third parties to secure business deals in Asia and the Middle East.

Read this next

Digital Assets

BlockTower teams up with Centrifuge to bring real world assets to DeFi

The protocol empowers businesses to tokenize non-crypto assets such as mortgages, invoices and consumer credit, to create asset-backed pools that create an investment opportunity, and as a result, democratizing access to capital.

Digital Assets

Solana-powered game DeFi Land launches Play-and-Earn features

The Play-and-Earn mechanics announcement comes on the heels of a collab between DeFi Land and STEPN. DeFi Land will soon announce chain integrations, an alpha mobile version, and a multichain feature. 

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

<