The United States Commodity Futures Trading Commission (CFTC) has marked some progress in its lawsuit accusing former Deutsche Bank traders James Vorley and Cedric Chanu of spoofing.
As FX News Group has reported, the regulator has been in settlement talks with the defendants for several months. And, according to a status report filed with the Illinois Northern District Court on September 3, 2021, the CFTC has reached a settlement with James Vorley.
In particular, the CFTC’s Division of Enforcement has reached an agreement in principle to resolve the litigation in its entirety as to Vorley, which the plaintiff is prepared to recommend to the Commission. Plaintiff and Defendant Vorley now request that the Court continue the stay as to Vorley for an additional 45 days to allow the Division and Defendant Vorley to finalize a proposed Consent Order and to allow the Commission time to consider the recommendation.
On the downside, following settlement discussions, the CFTC and Defendant Chanu say they are at an impasse and unable to resolve the matter at this time. Accordingly, Plaintiff and Defendant Chanu request that the stay be partially lifted to allow the litigation to proceed against Defendant Chanu.
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.