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In CFTC Action, Court Orders Precious Metals Trader to Pay Penalty and Imposes Trading Ban for Spoofing and Deceptive or Manipulative Scheme

February 12, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: CFTC, CFTC Action, CFTC Regulations, Manipulative Scheme, Metals Trader, spoofing, Trading Ban, UBS AG, violation

CFTC LogoWashington, DC — The Commodity Futures Trading Commission (CFTC) announced today that Judge Vanessa Bryant of the U.S. District Court for the District of Connecticut issued a Final Judgment and Consent Order on February 5, 2019, against Andre Flotron, a former precious metals trader for UBS AG, requiring him to pay a $100,000 civil monetary penalty for spoofing and engaging in a deceptive or manipulative scheme through his spoofing in violation of the Commodity Exchange Act (CEA) and CFTC Regulations.  The Order also imposes a one-year trading and registration ban.

James McDonald, CFTC Director of Enforcement commented: 

James McDonald, CFTC’s Director of the Division of Enforcement

“This case reflects our continued commitment to preserving the integrity of our markets — like the precious metals markets at issue here — and to rooting out unlawful practices like spoofing.  As this case shows, we will continue to work vigorously to hold individuals accountable, and not just the companies that employ them, for misconduct in our markets.”

The Order, arising from a CFTC complaint filed on January 26, 2018 (see CFTC Complaint and Press Release 7685-18), finds that from at least August 2008 through at least November 2013, while employed at UBS, Flotron placed large orders in the precious metals futures markets with the intent to cancel the orders before execution (spoof orders).  The Order finds that in placing the spoof orders, Flotron intended to send market participants a signal of greater supply or demand to create the misimpression that the price would move up or down and trick market participants to transact on smaller, genuine orders that he placed on the opposite side of the market.  The Order concludes that Flotron’s conduct constituted spoofing and a deceptive or manipulative scheme in violation of the CEA and CFTC Regulations.

This case was brought in connection with the CFTC Division of Enforcement’s Spoofing Task Force, and the staff members responsible are Alben Weinstein, David Oakland, Sam Wasserman, Patryk J. Chudy, Lenel Hickson, Jr., and Manal M. Sultan.

Other News

  • CFTC Orders Commodity Trading Firm and Principal to Pay a $315,000 Civil Monetary Penalty for “Cherry-Picking” SchemeCFTC Orders Commodity Trading Firm and Principal to Pay a $315,000 Civil Monetary Penalty for “Cherry-Picking” Scheme
  • CFTC Charges Chicago-area Trader with Ongoing Forex and Commodity FraudCFTC Charges Chicago-area Trader with Ongoing Forex and Commodity Fraud
  • CFTC and State of Utah Charge Salt Lake City Precious Metals Dealer and His Company with Engaging in $170 Million Precious Metals Ponzi SchemeCFTC and State of Utah Charge Salt Lake City Precious Metals Dealer and His Company with Engaging in $170 Million Precious Metals Ponzi Scheme
  • Major Spoofing Sweep Announced By CFTC and DOJMajor Spoofing Sweep Announced By CFTC and DOJ

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