A shocking revelation has surfaced in the U.S markets with a former-J.P. Morgan Chase trader admitting to having manipulated the U.S. markets for nearly 7 years of a series of precious metals. He has also implicated his supervisors at J.P Morgan Chase.
This was revealed by the US Department of Justice in their Tuesday release where they mentioned John Edmonds pleading guilty to a commodities fraud and also a conspiracy to commit a wire fraud, manipulation of price and spoofing. Edmonds’ LinkedIn account also testifies that he worked in J.P Morgan for 13 years and quit last year.
Edmonds’ plea includes his statement that he was in a conspiracy with other J.P Morgan traders from 2009 to 2015 where they planned to manipulate the prices of precious metals such as silver, gold, platinum and palladium futures contracts on exchanges that were run by CME group. They executed the fraud by routinely placing orders that they cancelled before the execution of trades. This is a price manipulation tactic that is known as spoofing.
J.P Morgan is the biggest investment bank in the world if revenues are to be considered and Edmonds said that he learned these sophisticated con schemes from his seniors and supervisors who were also aware of his actions.
Edmonds’ sentencing will be on Dec.19 when he is expected to face prison for up to 30 years.