(WTNH) — Two Connecticut men are among the eight people who have been charged for allegedly engaging in deceptive trading practices on United States commodities markets.
Officials say seven out of the eight people are being publicly charged with the crime of spoofing. They say spoofing is an illegal trading practice that can be used to manipulate the commodities markets.
Authorities say 55-year-old Edward Bases of New Canaan and 53-year-old John Pacilio of Southport have been charged in a criminal complaint with commodities fraud. They say the fraud is in connection to an alleged scheme where they engaged in both solo and coordinating spoofing on COMEX.
According to officials the alleged spoofing happened when the men were employed as precious metal traders at a leading global financial institution. They say both men were based in New York City.
The two men were charged by the United States Attorney’s Office for the Northern District of Illinois. Bases has also been charged with spoofing offenses.
The United States Attorney’s Office for the District of Connecticut charged, 53-year-old Andre Flotron a Swiss national living in Wayne, New Jersey with an indictment. Authorities say Flotron has been charged with conspiracy to commit spoofing, wire fraud, and commodities fraud.
According to authorities, the charges were allegedly committed when he was working for UBS AG as a precious metals trader at the company’s Stamford and Zurich, Switzerland trading desks.
Officials say Flotron had also allegedly trained and instructed another trader in the company in the practice of using spoof orders.
Below is a list of the five others who were publicly charged for alleged deceptive trading practices.The Northern District of Illinois:
- 37-year-old, James Vorley of the United Kingdom and 39-year-old Cedric Chanu of France, were charged with conspiracy, wire fraud, commodities fraud, and spoofing offenses. Officials say the men allegedly executed a scheme to defraud through the use of solo and coordinated spoofing on COMEX while being employed as metals traders for a leading global financial institution.
- 41-year-old Jitesh Thakkar of Naperville, Illinois was charged with wire fraud, commodities fraud, making false statements to the Chicago Mercantil Exchange (CME), and spoofing offenses. Authorities say Thakkar allegedly developed a software program that his co-conspirator used to engage in spoofing through the placement of thousands of order on the CME. Thakkar was the founder and principal of Edge Financial Technologies Inc. in Chicago.
- 30-year-old Jiongsheng (“Jim”) Zhao of Austrailia was charged by authorities with wire fraud, commodities fraud, making false statements to the CME, and spoofing offenses. Officials say a data analysis identified the hundreds of instances of Zhao’s alleged spoofing on the CME between July of 2012 and March of 2016. They say he allegedly made false statements to the CME after he was confronted with allegations of deceptive practices.
Southern District of Texas:
- 33-year-old Krishna Mohan of New York, New York was charged with commodities fraud and spoofing offenses while employed at a Chicago proprietary trading firm as a trader and programmer. Officials say a data analysis identified that he was allegedly engaging in spoofing over a thousand times in a two-month period.