Deutsche Bank Traders’ Manual Spoofing Violated Wire Fraud Law

The wire fraud convictions and one-year sentences two Deutsche Bank precious metal traders received for operating a manual spoofing scheme were upheld by the Seventh Circuit. Cedric Chanu and James Vorley were convicted for a manual spoofing scheme in which they made precious metal orders they intended to withdraw before being filled in order to manipulate the market in their favor. Chanu and Vorley argued that the orders they placed weren’t fraudulent because orders can be legitimately withdrawn and they never implicitly represented to the market that they intended them to be filled. To prove wire fraud the government must show that a defendant used an interstate wire transmission to participate in a scheme in which they intended to defraud, the opinion by Judge Joel M. Flaum said. The falsehood must also be material to the scheme, Flaum said. To continue reading the rest of the article, please click on the source link below: https://news.bloomberglaw.com/us-law-week/deutsche-bank-traders-manual-spoofing-violated-wire-fraud-law