January 29, 2018
CFTC Charges Andre Flotron with Spoofing and Engaging in a Deceptive and Manipulative Scheme in the Precious Metals Futures Markets
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced the filing of a civil enforcement action in the U.S. District Court for the District of Connecticut against Andre Flotron, of Switzerland, charging him with engaging in a manipulative and deceptive scheme and spoofing in the precious metals futures markets on a registered entity.
CFTC’s Director of Enforcement Comments
James McDonald, the CFTC’s Director of Enforcement, commented: “Spoofers unlawfully inject false information into the market that is intended to trick law-abiding market participants into trading at distorted prices that improperly benefit the spoofer. As this case shows, the CFTC is committed to pursuing the individuals responsible for spoofing in our markets.”
The CFTC Complaint alleges that from approximately August 2008 through November 2013, while employed as a precious metals trader at Bank A, Flotron engaged in manipulative or deceptive acts and practices by “spoofing” (bidding or offering with the intent to cancel the bid or offer before execution) on an ongoing basis. Specifically, the Complaint alleges that Flotron placed large orders to buy or sell precious metals futures contracts that he intended to cancel before execution. The Complaint alleges that Flotron placed these “spoof orders” on the opposite side of the market from smaller orders that he intended to execute. According to the Complaint, Flotron placed the large spoof orders to send false signals of increased demand or increased supply designed to trick other market participants into executing on his smaller orders, or recklessly disregarded that the spoof orders would send such false signals to market participants.
The CFTC Complaint also alleges that, in or about 2008, Flotron was the primary person assigned to train another trader at Bank A. In the course of this training, Flotron taught the other trader how to spoof.
In its continuing civil litigation, the CFTC seeks, among other relief, civil monetary penalties, disgorgement, and a permanent injunction against future violations of the Commodity Exchange Act and CFTC Regulations, as charged.
The CFTC thanks and acknowledges the assistance of the U.S. Department of Justice, the Federal Bureau of Investigation, and the CME Group.
This case is brought in connection with the CFTC Division of Enforcement’s Spoofing Task Force, and the staff members responsible for this case are Sam Wasserman, David Oakland, Brandon Wozniak, Alben Weinstein, Patryk J. Chudy, Lenel Hickson, Jr., and Manal M. Sultan.
Last Updated: January 29, 2018