US Govt, CFTC support proposed stay of civil proceedings against ex-UBS trader

Maria Nikolova

Whereas Andre Flotron insists such a stay would unfairly prejudice him, the Government and the regulator argue that the civil proceedings should be stayed until the end of a criminal case against the ex-trader.

Andre Flotron, a former precious metals trader of UBS AG (SWX:UBSN), is facing opposition from the United States Government and the Commodity Futures Trading Commission (CFTC) over his plans to stop the protracting of the cases against him.

On Thursday, March 8, 2018, the Government and the CFTC filed Motions that support an earlier request by the Government to intervene in the civil case against the defendant, who is accused of spoofing. The Government insists that the civil case against Flotron should be stayed until the criminal proceedings against him in a related case are over.

Whereas the defendant argues that he will be prejudiced by the requested stay, the Government notes that Flotron does not explain how exactly he will be prejudiced. The Government argues it is not saying that this civil action should never proceed or that defendant Flotron may never have an opportunity to defend himself in this case. Rather, the Government is merely requesting a stay of a short duration pending a parallel criminal proceeding. Given the status of the criminal case (including that trial is less than a month away), such a limited stay would benefit judicial economy and the public interest, while having only minimal (if any) impact on the defendant.

The criminal case, however, has proven to be controversial with regard to the Government’s planned schedule and venue requests.

In February, Judge Jeffrey Alker Meyer of the Connecticut District Court blasted the Government’s requests to allow the transfer of the criminal case against Flotron to Illinois. The Judge concluded that a speedy trial should proceed in Connecticut on the schedule previously agreed to by the Government. In explaining his decision, the Judge said it would be clearly contrary to the manifest public interest to allow the Government to break its agreement to proceed to trial in April so that it may start the prosecution all over again on a blank slate with new charges in the Northern District of Illinois.

Andre Flotron, a citizen and resident of Switzerland, was arrested in September 2017, while visiting his girlfriend in the United States, based on a federal criminal complaint that issued from the District of Connecticut. The criminal complaint alleged defendant’s violation of federal criminal laws including conspiracy, wire fraud, commodities fraud, and “spoofing” between July 2008 and November 2013. The charges stemmed from allegedly fraudulent or manipulative practices by defendant while he was employed as a precious metals trader for UBS AG.

In October 2017, Flotron was released on a $4 million bond and strict conditions of home confinement with GPS monitoring at a residence of a custodian in New Jersey.

The civil case against Mr Flotron is captioned Commodity Futures Trading Commission v. Flotron (3:18-cv-00158).

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<