{"id":1138832,"date":"2019-09-17T17:17:08","date_gmt":"2019-09-17T22:17:08","guid":{"rendered":"http:\/\/www.kereport.com\/?p=67117"},"modified":"2019-09-17T17:17:08","modified_gmt":"2019-09-17T22:17:08","slug":"more-on-j-p-morgan","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1138832","title":{"rendered":"More on J.P. Morgan"},"content":{"rendered":"
\"\"
I would strongly recommend that both Bob Moriarty and Chris Temple read this article. Big Al asks them the question:”Just more fantasy stories, guys?”<\/em><\/strong> I realize that neither one of you guys particularly cares for Murphy, but remember that all he did was quote the story as published by Bloomberg. But then again, you two seem to get a kick out of bringing shame to Big Al. Fortunately for him this time your efforts backfired.<\/figcaption><\/figure>\n

Two current and one former
\nJPMorgan Chase employees have been arrested and charged by the FBI for their
\nalleged participation in a racketeering conspiracy in connection with the
\nmanipulation of the markets for precious metals.<\/p>\n

Michael Nowak, 45, and
\nGregg Smith, 55, are on leave, making them the third and fourth JPMorgan
\nemployees to be connected to the criminal investigation, which  has
\nresulted in guilty pleas from two former JPMorgan metals traders. <\/p>\n

Christopher
\nJordan, 47, who left the company in 2009, was an executive director and
\ntrader on JPMorgan’s precious metals desk in New York. <\/p>\n

All three were arrested as
\npart of a spoofing investigation. Spoofing involves placing bids to buy or
\noffers to sell contracts with the intent to cancel them before execution.<\/p>\n

By creating an illusion of
\ndemand, spoofers can influence prices to benefit their market positions. <\/p>\n

‘The defendants and others
\nallegedly engaged in a massive, multi-year scheme to manipulate the market for
\nprecious metals futures contracts and defraud market participants,’ said
\nAssistant Attorney General Brian A. Benczkowski.  <\/p>\n

Authorities said the alleged
\ncriminal activity spanned over eight years and involved thousands of unlawful
\ntrading sequences.<\/p>\n

Nowak is a managing
\ndirector and global head of base and precious metals trading in New York for
\nthe bank, according to his LinkedIn profile. <\/p>\n

According to the source,
\nNowak was placed on leave around late August. Smith was an executive director
\nand trader on JPMorgan’s precious metals desk in New York. <\/p>\n

Authorities said in the
\nthousands of sequences, the employees ‘placed deceptive orders for gold,
\nsilver, platinum and palladium futures contracts traded on the New York
\nMercantile Exchange Inc and Commodity Exchange Inc, which are commodities
\nexchanges operated by CME Group Inc’. <\/p>\n

‘This false and misleading
\ninformation was intended to, and at times did, trick other market participants
\ninto reacting to the apparent change and imbalance in supply and demand by
\nbuying and selling precious metals futures contracts at quantities, prices and
\ntimes that they otherwise likely would not have traded’, the indictment
\nalleges. <\/p>\n

JPMorgan, one of the
\nlargest gold trading banks in the world, said in an August regulatory filing it
\nis ‘responding to and cooperating with’ investigations by various authorities,
\nincluding the Department of Justice, relating to trading practices in the
\nmetals markets.<\/p>\n

There has been a surge in
\nspoofing-related prosecutions in recent years.<\/p>\n

Bank of America Corp’s
\nMerrill Lynch commodities unit, for example, paid $25million in July to resolve
\nactions by the US Commodities Futures Trading Commission and Department of
\nJustice for precious metals spoofing trades between 2008 and 2014.<\/p>\n

The Department of Justice
\nalready secured guilty pleas from two former JPMorgan metals traders,
\nChristiaan Trunz and John Edmonds. <\/p>\n

Authorities said in the thousands of sequences, the
\nemployees ‘placed deceptive orders for gold (file image), silver, platinum and
\npalladium futures contracts traded on the New York Mercantile Exchange Inc and
\nCommodity Exchange Inc<\/strong><\/p>\n

The announcement of their
\npleas, in August 2019 and October 2018, respectively, indicated that they had
\ncollaborated on spoofing with their supervisors, who were not named.<\/p>\n

Trunz placed ‘thousands’ of
\norders he did not plan to execute for gold, silver, platinum and palladium futures
\ncontracts between 2007 and 2016, and had learned to spoof from more senior
\ntraders, the Department of Justice said in August, adding that he was
\ncooperating with ‘the ongoing investigation’.<\/p>\n

Nowak and another former
\nJPMorgan trader, Robert Gottlieb, are named as defendants in at least one other
\ncivil suit related to metals spoofing at JPMorgan. <\/p>\n

A December 2018 class
\naction complaint, for example, said that Edmonds, Nowak, Gottlieb and others
\nmade hundreds of spoof orders or more as ‘part of a conspiracy’ with the bank
\nand other internal traders.<\/p>\n

An attorney for Gottlieb
\ndid not respond to a request for comment. Koch Industries Inc, Gottlieb’s last
\nknown employer, did not immediately respond to a request for comment. <\/p>\n

JPMorgan has also been sued
\nseparately by a group of investors, who said they lost money as a result of the
\nbank spoofing its trades. <\/p>\n

In one of the lawsuits
\nbrought against the bank by Daniel Shak, a metals trader, Shak estimated he
\nsuffered immediate losses of around $25million after he was forced to liquidate
\nhis position as a result of JPMorgan’s market manipulation, a court document
\nshowed.<\/p>\n

The civil suits against
\nJPMorgan have been stayed pending the Department of Justice probe. <\/p>\n

Attorneys for Nowak did not
\nrespond to a request for comment. <\/p>\n

A call to Smith’s number at
\nthe bank was answered by an employee at the metals desk who directed questions
\nto the bank’s public relations department. A spokesman for the Department
\nof Justice declined to comment.<\/p>\n

All three defendants were
\ncharged with one count of conspiracy to conduct the affairs of an enterprise
\ninvolved in interstate or foreign commerce through a pattern of racketeering
\nactivity; one count of conspiracy to commit wire fraud affecting a financial
\ninstitution, bank fraud, commodities fraud, price manipulation and spoofing;
\none count of bank fraud and one count of wire fraud affecting a financial
\ninstitution. <\/p>\n

In addition, Smith and
\nNowak were each charged with one count of attempted price manipulation, one
\ncount of commodities fraud and one count of spoofing. <\/p>\n","protected":false},"excerpt":{"rendered":"

Two current and one former JPMorgan Chase employees have been arrested and charged by the FBI for their alleged participation…<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[362],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1138832"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1138832"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1138832\/revisions"}],"predecessor-version":[{"id":1138833,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1138832\/revisions\/1138833"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1138832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1138832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1138832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}