Division of Justice prosecutors charged a sixth JPMorgan govt for dishonest within the valuable metals markets.
Jeffrey Ruffo stands accused of racketeering and spoofing metals costs from 2008 – 2016, together with different crimes together with conspiracy to commit wire fraud.
The indictment outlines almost a decade spent coordinating with different merchants in JPMorgan’s valuable metals division to rig costs. The exercise contains hundreds of fraudulent trades positioned for 2 functions.
The primary was to profit favored JPMorgan purchasers on the expense of different traders.
The second was to profit JPMorgan and the merchants immediately by dishonest their very own purchasers.
The investigation is ongoing, and extra indictments, together with prices in opposition to merchants at different bullion banks, could also be on the best way. It seems that at the very least among the executives now dealing with jail time have determined to cooperate and supply proof in opposition to others concerned.
The DOJ prosecutions are definitely a step in the appropriate route. It’s getting more durable for even the staunchest defenders of futures buying and selling to dismiss worth manipulation as a mere conspiracy principle.
The real prospect of jail time could also be giving pause to any crooked bankers nonetheless working within the gold and silver markets. And, the story ought to be a watch opener for bullion financial institution purchasers and speculators nonetheless playing within the rigged on line casino often known as the COMEX.
For individuals who have been watching this story, it’s exhausting to fathom why anybody continues to be anticipating honest therapy within the futures markets. It’s clear, nevertheless, that loads of confidence stays. Gold open curiosity made new all-time highs final week.
So long as traders rely on the COMEX and different exchanges for worth discovery, it’s the job of federal regulators to do one thing to curb the rampant dishonest. Sadly, the Commodity Futures Buying and selling Fee, the first regulator for futures markets, continues to be captured and/or incompetent.
The CFTC has taken no accountability for its failed 5-year investigation of worth manipulation within the silver market. Company officers one way or the other managed to miss the huge pile of proof that DOJ investigators have rounded up.
They’ve taken nearly no motion regardless of the DOJ indictments and responsible pleas. JPMorgan continues to be lively within the markets regardless that its bullion buying and selling desk appears to function like a felony enterprise.
CFTC officers are in a quandary just like those that always dismiss allegations of worth manipulation as mere conspiracy principle.
It’s getting more durable and more durable for them to disregard the details.
Congressman Alex Mooney from West Virginia is asking Legal professional Normal Invoice Barr to take a look on the worth rigging which continues largely unchecked by the CFTC. Value spoofing may be the tip of the iceberg when it comes to felony exercise.
The Congressmen previously sent letters to the CFTC with pointed questions on among the questionable exercise within the futures markets, however has but to get a response.
All this begs the query about what the CFTC may do if dozens of bankers at a number of banks are finally convicted. Will officers there nonetheless be capable of sit on their fingers and defend their crooked associates on Wall Road from enforcement?