A federal jury in Chicago convicted two former traders in JPMorgan Chase & Co.’s precious metals division on charges of manipulating gold prices, finding they used deceptive price manipulation orders.
The convictions are the capstone of a seven-year campaign by the Justice Department to punish a style of fraudulent trading in futures markets known as spoofing. The rapid-fire strategy was widespread at some Wall Street banks before Congress banned spoofing in 2010 and continued after it was banned, according to prosecutors. JPMorgan paid $920 million in 2020 to settle regulatory and criminal charges against the bank over dealer behavior.
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