The case brought by the United States Commodity Futures Trading Commission (CFTC) against former Deutsche Bank trader Cedric Chanu will proceed.

On September 20, 2021, the Honorable Steven C. Seeger of the Illinois Northern District Court lifted the stay of the case against Chanu, so that the litigation may proceed. The Judge noted that the regulator and Chanu had engaged in settlement discussions, but they are now at an impasse.

As FX News Group has reported, the other defendant in this case – James Vorley, has reached a settlement in principle with the CFTC. The parties must file a status report by October 18, 2021.

The CFTC case against the traders 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).

This case has been stayed, except for document discovery, pending the conclusion of a parallel criminal proceeding. In June, Vorley and Chanu were each sentenced to a term of imprisonment of one year and one day.

James Vorley and Cedric Chanu are challenging their prison sentences. This becomes clear from documents filed by the traders on July 3, 2021 and July 6, 2021, at the Illinois Northern District Court.