Another JPMorgan Silver Spoofing Ex-Employee Pleads Guilty
The US Department of Justice accepted the admission that Trunz placed thousands of pretending orders for silver, gold, and other precious metals futures contracts which he did not intend to execute (2007-2016).
Coincidentally Trunz’s timespan at JP Morgan also covered a span in time in which JP Morgan was alleged to have been naked short selling silver derivative contracts in late 2010 silver trading.
By using false price signals, derivative traders in precious metals can gain profits by creating market moves in price to both his and JP Morgan’s advantage. Trunz will get sentenced February 2020, and there is no word yet on how much his ill-gotten gains will have to be forfeited either.
“Trunz learned to spoof from more senior traders, and spoofed with the knowledge and consent of his supervisors,” said the Justice Department. The US Justice Department also noted that Trunz was co-operating with their ongoing investigation in further precious metals related frauds.