COMEX/NYMEX Precious Metals Spoofing Lawsuit Investigation


COMEX/NYMEX Precious Metals Spoofing Lawsuit Investigation

Our securities attorneys are investigating potential commodities market manipulation claims on behalf of purchasers or sellers of NYMEX platinum or palladium futures contracts and/or COMEX silver futures or gold futures contracts, or any options on those futures contracts.

Did you purchase or sell NYMEX platinum or palladium futures contracts, COMEX silver or gold futures contracts, or any options on those futures contracts between January 1, 2009 and December 31, 2014?

If so, you may be entitled to compensation. Protect your rights and contact a Girard Sharp securities attorney for a free and confidential case consultation by calling toll-free at (866) 981-4800 or by filling out the form below:

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The Department of Justice Guilty Plea

On November 5, 2018, the United States Department of Justice unsealed a plea agreement revealing that John Edmonds, a JP Morgan trader, admitted to conspiring with others at the bank between 2009 and 2014 to “spoof” orders for precious metals futures contracts.

According to the DOJ, Edmonds routinely manipulated the prices of gold, silver, platinum and palladium by placing orders that were quickly cancelled before the trades were executed, a price-distorting practice known as spoofing. Edmonds pleaded guilty to one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation and spoofing.

According to recent reports, the spoofing practices were not limited to Edmonds and JP Morgan as alleged by the DOJ, but may also include other traders at various firms, such as Merrill Lynch, Bank of America, and Morgan Stanley. CNBC reports that Edmonds learned the spoofing practice—placing orders that were never intended to be executed—from senior JP Morgan traders, and that his supervisors knew of his actions.

Furthermore, on June 25, 2019 the Commodity Futures Trading Commission issued an order stating it found reason to believe that spoof trades reportedly executed by Merrill Lynch and Bank of America Corporation traders may may have violated federal laws .

Read the DOJ’s press release here and a copy of the CFTC order here.

What is Spoofing?

Spoofing is the practice of knowingly bidding and offering trades with the intent to cancel the bid and offer—often within seconds—before the trades are executed. The spoofed orders alter the appearance of supply and demand and manipulate markets which are otherwise efficient. Spoofing is intended to entice other traders to base their investment decisions on the false perception of supply and demand created by the spoofing conduct.

According to the DOJ, these allegations are the result of an ongoing investigation into spoofing practices.

Did you purchase or sell NYMEX and COMEX precious metals?

You may have a legal claim. Speak to a securities and investments attorney about your rights by calling (866) 981-4800 or filling out the form at the top of the page.

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Girard Sharp has earned national Tier 1 rankings for Mass Tort and Class Action Litigation and has been named to the U.S. News – Best Lawyers “Best Law Firms” list each year since 2013. Read about some of our results.

We have recovered over a billion dollars for our clients against some of the nation’s largest corporations—including Raymond James, John Hancock, Sears, Yahoo, and JP Morgan Chase—in cases arising from securities fraud, false advertising and other unfair business practices.

For a free consultation about your potential claims, contact one of our investment fraud attorneys at (866) 981-4800 or fill out the form toward the top of this page.

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