The settlement talks between the United States Commodity Futures Trading Commission (CFTC) and former Deutsche Bank trader James Vorley have taken a turn for the worse.
Less than two months after the CFTC said it had reached a settlement in principle with Vorley, who stands accused of spoofing the futures market, the regulator has informed the Illinois Northern District Court that the talks have stalled.
According to a status update submitted at the Court on October 18, 2021, following good faith efforts to finalize a proposed Consent Order, the CFTC and Vorley are at an impasse and unable to resolve the matter at this time.
Accordingly, the CFTC and Vorley request that the stay be lifted to allow the litigation to proceed against Vorley.
The CFTC case against James Vorley and Cedric Chanu was launched in January 2018. The regulator charged them with spoofing and engaging in a manipulative and deceptive scheme in the precious metals futures markets.
The CFTC Complaint alleges that beginning in at least May 2008 and continuing through at least July 2013, while employed at a large financial institution, Vorley and Chanu engaged in a manipulative and deceptive scheme while placing orders and trading in the precious metals futures markets on a registered entity. Specifically, in furtherance of the scheme, Vorley and Chanu repeatedly engaged in manipulative or deceptive acts and practices by spoofing (bidding or offering with the intent to cancel the bid or offer before execution).
In June, in a parallel criminal case, Vorley and Chanu were each sentenced to a term of imprisonment of one year and one day. They are challenging these sentences.