Andre Flotron, a Swiss national, has been charged with spoofing in the precious metals futures markets, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the District of Connecticut on January 29, 2018.
The CFTC alleges that from approximately August 2008 through November 2013, while employed as a precious metals trader at Bank A, Flotron engaged in a manipulative scheme by placing large buy or sell orders with the intent to cancel them before execution – a practice known as “spoofing.” These “spoof orders” were allegedly placed opposite smaller orders Flotron intended to execute, designed to create false signals of market demand or supply.
According to the complaint, Flotron’s actions were intended to trick other market participants into executing trades at distorted prices, benefiting him through the manipulation. The CFTC further alleges that Flotron not only engaged in spoofing himself but also trained another trader at Bank A in the practice around 2008.
James McDonald, the CFTC’s Director of Enforcement, stated that spoofing injects false information into the market and the CFTC is committed to pursuing individuals responsible for such actions.
The CFTC is seeking civil monetary penalties, disgorgement of ill-gotten gains, and a permanent injunction against Flotron to prevent future violations of the Commodity Exchange Act and CFTC Regulations. The agency received assistance in the matter from the U.S. Department of Justice, the Federal Bureau of Investigation, and the CME Group.
The case is part of the CFTC Division of Enforcement’s Spoofing Task Force. Staff members involved include Sam Wasserman, David Oakland, Brandon Wozniak, Alben Weinstein, Patryk J. Chudy, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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