January 29, 2018
CFTC Charges James Vorley and Cedric Chanu with Spoofing and Engaging in a Deceptive and Manipulative Scheme in the Precious Metals Futures Markets
Washington, DC – The Commodity Futures Trading Commission (CFTC) announced the filing of a civil enforcement action in the U.S. District Court for the Northern District of Illinois against James Vorley, a U.K. resident, and Cedric Chanu, a United Arab Emirates resident, charging them with spoofing and engaging in a manipulative and deceptive scheme in the precious metals futures markets.
CFTC’s Director of Enforcement Comments
James McDonald, the CFTC’s Director of Enforcement, commented: “Spoofing undermines the integrity of our markets and gives those engaging in the unlawful conduct an unfair advantage over law-abiding market participants. The CFTC is committed to identifying and prosecuting this type of misconduct. As this case shows, the CFTC will aggressively pursue not only companies but also individuals who engage in this type of misconduct in our markets.”
The CFTC Complaint alleges that beginning in at least May 2008 and continuing through at least July 2013, while employed at a large financial institution, Vorley and Chanu engaged in a manipulative and deceptive scheme while placing orders and trading in the precious metals futures markets on a registered entity. Specifically, in furtherance of the scheme, Vorley and Chanu repeatedly 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 numerous occasions, Vorley and/or Chanu placed orders for COMEX gold, silver, platinum or palladium futures contracts that they wanted to get filled (Genuine Order) and entered orders for the same contract on the opposite side of the market that they intended to cancel before execution (Spoof Order). In placing these Spoof Orders, Defendants Vorley and Chanu intentionally or recklessly sent false signals of increased supply or demand to trick market participants into executing against the Genuine Orders Vorley and Chanu wanted to get filled. Vorley and Chanu also engaged in spoofing in coordination with other traders on the precious metals desk and taught another trader on the desk 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, the CME Group, and the UK Financial Conduct Authority.
This case is brought in connection with the CFTC Division of Enforcement’s Spoofing Task Force, and staff members responsible for this case are Katie Rasor, Brandon Wozniak, Alben Weinstein, Patryk J. Chudy, Lenel Hickson, Jr., and Manal M. Sultan.
Last Updated: January 29, 2018