Two Indian-Americans charged with deceptive trading practices

30 Jan 2018

Two Indian-Americans are among eight individuals charged with deceptive trading practices on commodities markets in the US.
Jitesh Thakkar, 41, of Naperville, Illinois, has been charged in a criminal complaint with conspiracy and spoofing offences, along with six others.
Spoofing is an illegal trading practice that can be used to manipulate the commodities markets.
Krishna Mohan, 33, of New York has been charged in a criminal complaint filed in the Southern District of Texas with commodities fraud.
Other than the individuals identified, only three others have ever been publicly charged with the crime of spoofing.
Of those identified, five were traders employed by global financial institutions, two were traders at large commodities trading firms, and one was the owner of a technology consulting firm, the Justice Department said.
The defendants and their co-conspirators are alleged to have defrauded market participants and manipulated these markets by placing hundreds, and in some cases, thousands of orders that they did not intend to trade, or "spoof orders," to create the appearance of substantial false supply and demand and to induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded.
The charges announced on Monday aggressively target, among other things, the practice of spoofing, which was allegedly employed in various forms by these defendants and/or their co-conspirators to manipulate the market for futures contracts traded on the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), and the Commodity Exchange Inc. (COMEX). (PTI)