Tyler Forbes Treasuries Spoofing Investigation

04.18.2022

Our securities attorneys are investigating reports of potential manipulation of U.S. Treasury securities by a former Merrill Lynch trader, Tyler Forbes.

Did you purchase or sell Treasury Securities between January and June 2019?

You may have a legal claim. Speak to an investment fraud attorney about your legal rights.

Speak to a Lawyer






Tyler Forbes’s Guilty Plea

On April 14, 2022, Tyler Forbes pleaded guilty in Brooklyn federal court to one count of manipulation of security prices. Forbes admitted to manipulating the prices of Treasury securities from January to June 2019 using an instantaneous trading device known as “spoofing.”

According to the government, Forbes’s scheme aimed to create a false appearance of market depth and activity to mislead other traders in the secondary market, and artificially raise or lower the prevailing market price of the securities, so that he could execute actual orders more profitably.

Many of Forbes’s orders were reportedly “iceberg” orders, meaning that only a portion of the order’s full size was visible to other market participants at any given time. In contrast, all of Forbes’s spoof orders were fully displayed in furtherance of the scheme.

What is Spoofing?

Spoofing is the practice of knowingly bidding and offering trades with the intent to cancel the bid and offer—often within milliseconds—before the trades are executed. The spoofed orders alter the appearance of supply and demand and manipulate markets which are otherwise efficient, giving the spoofer an unfair advantage. Spoofers thus seek to profit by enticing other traders to base their investment decisions on the false perception of supply and demand created by the spoofing conduct.

Did you purchase or sell Treasury Securities between January and June 2019?

You may have a legal claim. Speak to an investment fraud attorney about your rights by calling 1.866.981.4800 or filling out the form at the top of the page.

Our Commitment to Excellence

Girard Sharp LLP represents investors, consumers, and institutions in class actions and other complex litigation nationwide. We serve on the Plaintiffs’ executive committee in the recent spoofing litigation against JPMorgan Chase that settled for $60 million, a favorable resolution that the district court preliminarily approved on December 20, 2021. (S.D.N.Y. Case No. 1:18-cv-10356.) Our class action attorneys have obtained multimillion-dollar recoveries for victims of unfair and deceptive practices in antitrust, financial fraud, and consumer protection matters against some of the country’s largest corporations, including Raymond James, John Hancock, and Sears. Girard Sharp has earned top-tier rankings from U.S. News and World Report for Securities and Class Action Litigation and has been repeatedly selected as an Elite Trial Lawyers finalist by the National Law Journal.

Main Menu