Chicago, IL – The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Roman Banoczay Jr., his father Roman Banoczay Sr., and their company, BAZUR Spol. S.R.O., based in Bratislava, Slovakia, alleging a manipulative scheme involving crude oil futures contracts. The case was filed in the U.S. District Court for the Northern District of Illinois.
The CFTC alleges that from early 2018, Roman Banoczay Jr. engaged in “spoofing” – a form of market manipulation where traders place orders they intend to cancel before execution. This is done to create a false impression of demand or supply, tricking other market participants into executing trades at desired prices. Over a four-week period, Banoczay Jr. allegedly placed thousands of such orders for crude oil futures contracts on CME Group Inc.’s exchanges, acting both on his own behalf and as an agent for his father and BAZUR.
According to the complaint, these deceptive practices involved bidding or offering contracts with the explicit intention of canceling those bids or offers before they could be filled. The aim was to generate false signals of increased buying or selling activity, manipulating the market to benefit the defendants.
The CFTC is seeking civil monetary penalties, disgorgement of ill-gotten gains, trading bans, and a permanent injunction to prevent future violations of federal commodities laws. Banoczay Jr. was previously sanctioned by the CME Group on March 23, 2020, for the same alleged conduct, as detailed in CME Notice of Disciplinary Action NYMEX 18-0877-BC.
The agency acknowledged the assistance of the National Bank of Slovakia and CME Group Inc. in the investigation. The CFTC’s Division of Enforcement staff, including Ilana Waxman, Brian Hunt, Daniel Jordan, Patrick Marquardt, Jordon Grimm, and Rick Glaser, are handling the case.
The outcome of this case remains to be seen, but the CFTC’s action underscores its commitment to pursuing market manipulation, regardless of the perpetrators’ location.
Source: CFTC.gov
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