The Court has set a firm deadline for a possible settlement of the spoofing case brought by the United States Commodity Futures Trading Commission (CFTC) against former Deutsche Bank traders James Vorley and Cedric Chanu.
As FX News Group has reported, according to documents filed by the CFTC at the Illinois Northern District Court on July 9, 2021, the parties are in talks to settle the matter. The document states that the CFTC’s Division of Enforcement and counsel for defendants Vorley and Chanu have been engaged in good faith discussions regarding a potential resolution of the matter.
To avoid the unnecessary expenditure of Court and party resources, the parties requested that the Court continue the stay to allow the parties additional time to explore a potential resolution.
Soon after the request was made, the Honorable Steven C. Seeger said that the Court reviewed the status report, which provided an update on the sentencing of Defendants Vorley and Chanu in late June 2021. As requested, the Court continues the stay through September 3, 2021. A status report is due by September 3, 2021.
If the parties have not reached a settlement by that point (almost two months from now), then they must be prepared to proceed in this case with alacrity, given the age of the case, the Judge said.
The case was filed by the CFTC in January 2018. The regulator charged the traders 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.