Two former employees of a global financial institution were
charged in an indictment filed today for their alleged participation in
fraudulent and deceptive trading in previous metals futures contracts,
announced Assistant Attorney General Brian A. Benczkowski of the Justice
Department’s Criminal Division and Assistant Director in Charge William Sweeney
of the FBI’s New York Field Office.
Edward Bases, 56, of New Canaan, Connecticut, and John
Pacilio, 54, of Southport, Connecticut, were each charged with one count of
conspiracy to commit wire fraud affecting a financial institution and
commodities fraud. Bases and Pacilio
were also charged with one count of commodities fraud each. Pacilio was further charged with five counts
of spoofing.
The indictment alleges that Bases and Pacilio, who were
employed as precious metals traders at banks in New York, New York, engaged in
multi-year schemes to mislead the market for precious metals futures traded on
the Commodity Exchange Inc (COMEX), which was an exchange run by the Chicago
Mercantile Exchange Group The defendants
and their co-conspirators are alleged to have defrauded market participants by
placing orders that they did not intend to execute in order to create the
appearance of false supply and demand and to induce other market participants
to trade at prices, quantities and times that they otherwise would not have
traded.
An indictment is merely an allegation and all defendants are
presumed innocent until proven guilty beyond a reasonable doubt in a court of
law.
This case was investigated by the FBI’s New York Field
Office. Trial Attorneys Ankush Khardori
and Jeffery Le Riche of the Criminal Division’s Fraud Section are prosecuting
the case
The Fraud Section plays a pivotal role in the Department of
Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this
case should visit the Fraud Section’s Victim Witness website for more
information.
Posts
No comments:
Post a Comment