NEW YORK (Information) – The Division of Justice has charged one other former JPMorgan Chase & Co govt with alleged racketeering and manipulating treasured metals costs between 2008 and 2016, the newest in a string of comparable prosecutions.
FILE PHOTO: A common view of the Division of Justice constructing is seen forward of the discharge of the Particular Counsel Robert Mueller’s report in Washington, U.S., April 18, 2019. Information/Amr Alfiky/File Picture
The indictment towards Jeffrey Ruffo, who can also be charged with different federal crimes together with conspiracy to commit wire fraud, is the results of an “ongoing investigation”, federal prosecutors mentioned in a press release.
Ruffo is the sixth particular person to be charged with alleged fraud in connection to JPMorgan’s treasured metals desk.
The case pertains to spoofing, which entails putting bids to purchase or gives to promote contracts with the intent to cancel them earlier than execution, permitting spoofers to affect costs. In recent times there has a been a surge in spoofing associated prosecutions in the US by the Division of Justice and the Commodity Futures Buying and selling Fee.
Ruffo couldn’t instantly be reached for remark.
A JPMorgan spokesman didn’t instantly reply to a request for a remark. The U.S. financial institution has mentioned in latest regulatory filings that it’s cooperating with varied investigations referring to its metals buying and selling practices.
In accordance with the indictment, Ruffo labored at JPMorgan from 2008 to 2017 as a salesman serving hedge funds investing in treasured metals and he inspired JPMorgan merchants to position misleading orders to create worth benefits for his shoppers.
The indictment additionally alleged that Ruffo and his former colleagues defrauded JPMorgan’s shoppers who had invested in “barrier choices” by pushing choice costs to ranges that benefited the financial institution.
An choice is a monetary instrument that provides patrons the proper to purchase or promote an underlying asset at an agreed worth and at a hard and fast time. Its worth is tied to the worth of the asset.
Whereas earlier spoofing prosecutions have led to responsible pleas, a former metals dealer on the Swiss financial institution, UBS Group, was acquitted by a jury in an analogous case final yr. The acquittal highlighted the difficulties in making a case that cancelling orders is a legal act, on condition that many market orders go unfilled.
Some attorneys additionally argue it’s aggressive to cost financial institution executives with a racketeering conspiracy, which is often related to organized crime.
The costs have been filed on Thursday and made public on Friday.
Reporting by Koh Gui Qing and Lawrence Delevingne; Enhancing by Daniel Wallis