JPMorgan precious metals traders charged with market manipulation in US
The three top executives are accused of running a complex racketeering scheme which manipulated the market’s supply-and-demand process
Washington — Two current and one former JPMorgan Chase executives were charged over allegedly participating in market manipulation in the trade of precious metals including gold, silver, platinum and palladium between 2008 and 2016, the US department of justice said on Monday.
The three men — global precious metals desk head Michael Nowak, precious metals trader Gregg Smith, and former trader Christopher Jordan, who left JPMorgan in 2009 — were charged with a racketeering conspiracy and other federal crimes, it said in a statement.
A spokesperson for JPMorgan declined to comment. One of the largest gold traders in the world, the bank said in an August regulatory filing it was “responding to and co-operating with” investigations by various authorities, including the department of justice, relating to trading practices in the metals markets.
Nowak and Smith had been placed on leave from the bank pending the ongoing investigation.
Representatives for the three men could not immediately be reached for comment.
The defendants “and their co-conspirators allegedly engaged in a complex scheme to trade precious metals in a way that negatively affected the natural balance of supply-and-demand”, Federal Bureau of Investigation (FBI) assistant director William Sweeney said in the statement.
“Not only did their alleged behaviour affect the markets for precious metals, but also correlated markets and the clients of the bank they represented,” said Sweeney, who works in the FBI.
Two former JPMorgan metals traders have already pleaded guilty to illegal spoofing activity.
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