3/23/2023 0 Comments Chated accounted![]() ![]() ![]() Lucy Jennings, a Justice Department fraud prosecutor, told the jury that everyone on the team “could see and hear what everyone is doing”. Prosecutors on Friday described the trading desk as a small area with no walls or doors where Nowak, Edmonds and the others sat shoulder to shoulder, just a few feet from one another. When asked why not, he told the jury: “I would have been fired. “How could I not do it?” Among members of the team, the use of spoofing techniques “was expected”, he said, adding that he watched both Smith and Nowak execute spoof trades to fill client orders at favourable prices.Įdmonds said he never reported anyone for violating the bank’s compliance policy on trading. ![]() “I saw people trading for 20 years doing this,” Edmonds said. Edmonds’s supervisors and more senior members on the desk showed him how to layer trades, he told the jury, adding that it was understood on the desk that this was the way to trade precious-metals futures. Johns University in Queens, New York, joined JPMorgan’s precious-metals desk in 2009 at a salary of about $US80,000 ($118,500). ![]() If convicted of all charges, the three face decades in prison.Įdmonds, a Brooklyn native with a degree from St. Lawyers for the three said the government’s case is based on a misreading of evidence and the reliance on witnesses, like Edmonds, who are testifying to obtain light punishments. Traders on Nowak’s desk engaged in spoofing as a core business practice, doing it more than 50,000 times over nearly a decade, prosecutors allege, though the jury will only hear about a tiny portion of those. He pleaded guilty to conspiracy and commodities fraud charges related to spoofing in 2018. “If we wanted to sell high, we could.”Įdmonds is the first of a handful of cooperators slated to testify that prosecutors say will bolster their claim that Nowak, Smith and Ruffo participated in a racketeering enterprise from 2008 to 2016.Įdmonds was the first on the precious-metals desk to admit to crimes and secretly cooperated against former colleagues. “If we wanted to buy low, we could,” he said. While the technique didn’t always work, it was successful enough that everyone on the trading desk used it several times a week, Edmonds said. “I wanted to drive the price where I wanted it to go” by creating a false indication of demand, he said. If he wanted to sell at a higher price, he’d put orders in above the current market price, and then place huge orders to buy at higher prices that he’d cancel before they could be executed. Edmonds told a federal jury in Chicago on Tuesday (Wednesday AEST) that the team wasn’t just buying and selling precious metals, but systematically cheating to help themselves and their top clients over the course of the decade that Edmonds worked as a trader.Įdmonds described how he learned to spoof at JPMorgan. BloombergĮdmonds is testifying against his former boss, Michael Nowak, the longtime head of the trading desk, gold trader Gregg Smith and hedge funds salesman Jeffrey Ruffo. JPMorgan’s gold trading and sales team is alleged to have used spoofing trades to scam the market. “Everyone at the time did it on the desk and it worked.” “Our job was to do whatever it takes to make money,” and using spoof trades to manipulate prices for all sorts of precious metals was an almost daily method for generating profit, said John Edmonds, who worked as a trader at the bank until 2017. JPMorgan’s gold trading and sales team was so focused on making money that they scammed the market for years with so-called spoofing trades, according to a former colleague who testified at the trial of three former bank employees charged with fraud. ![]()
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