US accuses Chinese trader of orchestrating a US$60 million fraud through futures spoofing
Justice Department says accused and two others distorted the market by placing large fake trading orders they never intended to execute
Three commodities traders were charged by the US Justice Department with orchestrating a US$60 million fraud that involved spoofing and conspiring to manipulate futures contracts, according to prosecutors and court filings in Houston.
Yuchun “Bruce” Mao, a 39-year-old Chinese national, is accused of working with two other traders at his firm in a scheme to rig the purchase and sale of futures contracts on the Chicago Mercantile Exchange and the Chicago Board of Trade, according to an indictment made public on Friday.
A bench warrant for Mao’s arrest was issued on Wednesday by a federal judge, according to court documents.
The two others charged in the alleged scheme, Kamaldeep Gandhi, 36, of Chicago, and Krishna Mohan, 33, of New York, were preparing to plead guilty to related charges, prosecutors said. Gandhi has accepted a permanent ban from futures trading and is cooperating with an investigation by the Commodity Futures Trading Commission, the agency said.
These individuals engaged in a sophisticated scheme to distort the futures market for their own advantage
The three traders worked for the same trading firm at the time of the alleged misconduct, prosecutors said without naming the firm.