A Chicago federal jury recently convicted two former employees of German lender Deutsche Bank of multiple counts of wire fraud. The two employees, James Vorley and Cedric Chanu, were involved in commodity spoofing.
Both employees found guilty
A statement released by the US Department of Justice on Friday notes that 42-year-old James Vorley of the United Kingdom and 40-year-old Cedric Chanu of France and the UAE were found guilty of committed fraud. They engaged in manipulative and fraudulent trading practices for commodity trading, more specifically, the publicly traded precious metals futures contracts.
Vorley was convicted of three counts of wire fraud while Chanu was convicted of seven counts of fraud affecting a financial institution. The convicts will be facing sentencing on 21st January 2021 before District Judge John J. Tharp, Jr. of the Northern District of Illinois. Justice Tharp presided over the hearings of the case.
How did the employees commit fraud?
The evidence presented in court states that Vorley was working with Deutsche Bank in London where Chanu was working with the bank’s London and Singapore offices. The two were involved in a scheme to defraud traders on CME Group operated Commodity Exchange Inc. They placed fraudulent orders that they didn’t plan to the executive to artificially change the figures of demand and supply in the market.
Evidence also suggests that this was done to make unknowing traders trade at quantities, times, and prices that they would have not have traded if the prices were not manipulated.
“Today’s jury verdict shows that those who seek to manipulate our public financial markets through fraud will be held accountable by juries and the department,” commented Acting Assistant Attorney General Brian C. Rabbitt of the Criminal Division of the US Justice Department.
The New York Field Office of the Federal Bureau of Investigation (FBI) investigated the case. Prosecutors in the case were Deputy Chief Brian Young, Assistant Chief Avi Perry alongside Criminal Division’s Fraud Section Trial Attorney Leslie S. Garthwaite.