The U.S. Commodity Futures Trading Commission (CFTC) has settled charges against Corey D. Flaum of Mount Kisco, New York, for spoofing and manipulative conduct in the precious metals futures market. The CFTC found that Flaum engaged in a pattern of spoofing between 2007 and 2016 while employed at two separate New York banks.
The CFTC order requires Flaum to cease and desist from violating the Commodity Exchange Act and related regulations prohibiting spoofing, manipulative devices, and price manipulation. The investigation revealed that Flaum and others placed orders with the intention of canceling them before execution, creating false signals of buying or selling interest. These “spoof” orders were designed to deceive other market participants and influence transactions in favor of the banks.
Flaum entered into a formal cooperation agreement with the CFTC’s Division of Enforcement. As part of the agreement, the determination of any sanctions against Flaum has been reserved pending the completion of his cooperation. Separately, the Department of Justice’s Fraud Section has filed criminal charges against Flaum. He has already pleaded guilty to one count of attempted commodities price manipulation in United States v. Flaum (E.D.N.Y., Case No. 19-CR-338).
In a parallel case, the CFTC also settled charges against John Edmonds of Brooklyn, New York, for similar spoofing activity. The CFTC found that Edmonds engaged in a pattern of spoofing between 2009 and 2015 while employed at a New York bank. Like Flaum, Edmonds is required to cease and desist from violating relevant CFTC regulations.
The CFTC order against Edmonds details how he and others placed orders they intended to cancel, aiming to falsely induce other market participants to execute against their desired orders. The investigation further found that Edmonds, his employer, and others financially benefitted from this manipulative conduct. Edmonds previously pleaded guilty to one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation, and spoofing in a separate federal court case.
“Today’s enforcement actions send a clear message that spoofing and manipulation in our markets will not be tolerated,” stated James McDonald, Director of Enforcement at the CFTC. “The CFTC will use all of the tools in its arsenal to aggressively pursue individuals and entities who engage in this misconduct.”
Source: CFTC.gov
Related Federal Cases
- John F. Rivers, Car Theft Scheme, New York, 2023 · Florida
- Hyundai Kia Fined $9M for Theft-Lax Tech, New York NY, 2023 · New York
- United Parcel Service, Wage Theft, New York NY, 2023 · New Mexico
- Wall Street Firms, Financial Malfeasance, New York NY, 2023 · Washington
- Christopher Ferguson, PPE Scam, New York NY, 2023 · New Mexico
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News