Ex-Deutsche Bank traders seek to postpone sentencing in spoofing case
Less than a fortnight after James Vorley and Cedric Chanu submitted their motion for acquittal at the Illinois Northern District Court, the former Deutsche Bank traders requested that the Court postpone their sentencing.
Let’s recall that, on September 25, 2020, following a two-week trial, Vorley and Chanu were convicted of three counts and seven counts, respectively, of wire fraud affecting a financial institution. Specifically, the evidence showed that the defendants engaged in the practice of “spoofing,” which means that they placed orders on the exchange which, at the time the orders were placed, they did not intend to execute, all for the purpose of deceiving other market participants.
The sentencing of the traders is currently scheduled for January 21, 2021. However, on November 24, 2020, Vorley and Chanu filed a motion with the Court to postpone the sentencing.
The document, seen by FX News Group, shows that the defendants’ request is based on:
- the pending motions for judgments of acquittal and for a new trial;
- complications arising from the ongoing COVID-19 pandemic; and
- the prosecution’s recent disclosure of a 28-page declaration from its trial expert, Professor Kumar Venkataraman, which purportedly includes calculations of losses to over 300 unidentified market participants resulting from 5,900 unidentified alleged “spoofing sequences” between April 2008 and 2013.
At sentencing, the government is expected to argue, based on Professor Venkataraman’s declaration, that
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between April 2008 and July 2013, Vorley and Chanu engaged in approximately 5,900 “spoofing sequences,”
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the Court should consider all of those “spoofing sequences” as “relevant conduct,” and
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those “spoofing sequences” collectively caused more than 300 trading firms to sustain up to $1.4 million in trading losses.
According to the defendants, if the Court were to accept all of the government’s “spoofing loss” arguments, it would add 16 points to the defendants’ Sentencing Guidelines offense level and result in a tenfold increase to the defendant’s advisory Guidelines range.
Vorley and Chanu argue that they are required to expend time and resources preparing a rebuttal to Professor Venkataraman’s declaration.
The defendants insist that the sentencing hearing should be continued until at least March 31, 2021, with sentencing memoranda due one month in advance. The defendants further propose that the current January 21, 2021, sentencing date be converted to a telephonic status conference.
On November 23, 2020, the defendants inquired as to the government’s position on this motion. The government responded as follows: “The government does not consent to a continuance to permit additional time for briefing. However, the government defers to the Court as to whether a COVID-related continuance is necessary.”