New York, NY – A federal court in New York has permanently banned Heet Khara and Nasim Salim, residents of the United Arab Emirates, from trading in U.S. futures markets after finding they engaged in spoofing, a form of market manipulation. The U.S. Commodity Futures Trading Commission (CFTC) announced the consent order on April 5, 2016.
The court order requires Khara to pay a $1.38 million civil monetary penalty, while Salim will pay $1.31 million. Both are also subject to permanent trading and registration bans, effectively barring them from participating in any CFTC-regulated market.
The CFTC alleges that between February 2015 and April 28, 2015, Khara and Salim coordinated a scheme to manipulate gold and silver futures prices on the Commodity Exchange, Inc. (COMEX). They reportedly placed large orders for contracts, intending to cancel them before execution, while simultaneously executing smaller orders. This tactic, known as spoofing, creates a false impression of market demand and can artificially inflate or deflate prices.
“The CFTC will protect the U.S. futures markets regardless of where those who engage in illegal spoofing practices are located,” stated CFTC Director of Enforcement Aitan Goelman. “Spoofing undermines public confidence in our markets, and the CFTC will continue to aggressively pursue wrongdoers.”
The case originated from a CFTC complaint filed in May 2015. The investigation received cooperation from the CME Group, the Securities & Commodities Authority of the United Arab Emirates, and the Dubai Financial Services Authority.
The CFTC’s enforcement team included Katie Rasor, Neel Chopra, Patryk J. Chudy, Trevor Kokal, Alben Weinstein, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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