SMM / PRNewswire-Asianet /-- JPMorgan admitted wrongdoing and agreed to pay more than $920 million to settle U.S. authorities' allegations that the bank manipulated the market in metal futures and Treasuries over the past eight years. The amount represents the largest fine for alleged market manipulation in the history of the Commodity Futures Trading Commission (CFTC) in the United States.
The amount of $920 million includes a fine of $436.4 million, compensation of $311.7 million and ill-gotten gains of more than $172 million.
Over the past eight years, 15 JPMorgan traders have caused more than $300m in losses to other participants in the precious metals and government bond markets, according to court documents. JPMorgan acknowledges responsibility for the actions of traders.
"fraudulent fraud" is a financial term that refers to the act of making a false offer and then withdrawing an order in the stock market or futures market: placing an order first and then canceling the order, thereby affecting the stock price. The "swindler" (spoofer) affects the market by pretending to buy or sell at a particular price, creating the illusion of demand and trying to entice other traders to trade. Through this kind of "swindler" behavior, the "swindler" can buy or sell at the new price, thus making a profit.
The case surfaced in September 2019. Traders and eight unnamed co-conspirators working in JPMorgan offices in New York, London and Singapore were involved in a multi-year campaign to manipulate precious metals markets and defraud clients, according to the indictment.
The three defendants in the indictment include Michael Nowak, Gregg Smith and Christopher Jordan. Among them, Michael Nowak, a former managing director of JPMorgan, was also the head of the company's global precious metals division. Both Gregg Smith and Christopher Jordan have served as executive directors of JPMorgan and as traders in the company's precious metals division.
They were all charged with one count of conspiracy on charges of "fraudsters influencing and corrupt organizations," (Racketeer Influved and Corrupt Organization Act, referred to as RICO), and other federal crimes related to the manipulation of precious metal futures markets.
William F.Sweeney Jr, assistant director of the (FBI) of the Federal Bureau of investigation in New York, previously said: "Smith, Nowak, Jordan and their co-conspirators are involved in a complex plan to trade precious metals in a way that has a negative impact on the balance of natural supply and demand. The actions they are accused of have affected not only the precious metals market, but also the relevant markets and the customers of the banks they represent. As long as we continue to see this type of illegal activity in the market, we will remain committed to investigating and bringing to justice those who committed these crimes. "
