Guilty Plea In Precious Metals Fraud
Man Allegedly Manipulated Market
HARTFORD — A former precious metals trader has pleaded guilty to fraud in U.S. District Court in Hartford for his role in a conspiracy to mislead traders, including at least one in Connecticut, the U.S. Department of Justice said Tuesday.
John Edmonds, 36, of Brooklyn, N.Y., pleaded guilty under a plea agreement Oct. 9 to commodities fraud and conspiracy to commit each of the following: commodities fraud, wire fraud, commodities price manipulation and spoofing. Spoofing means bidding with the intent of manipulating the market and canceling the bid at the last minute.
Edmonds faces a maximum of 30 years in prison at his sentencing before U.S. District Judge Robert N. Chatigny, scheduled for Dec. 19, the Justice Department news release said. Information about the case was unsealed Monday.
According to the release, Edmonds admitted that, from 2009 and 2015, he conspired with other precious metals traders to manipulate the markets for gold, silver, platinum and palladium by placing orders for precious metals contracts with the intent of canceling them. The idea was to induce market participants to buy and sell at prices, quantities and times they otherwise would not have traded.
Edmonds told investigators he learned the deceptive trading strategy from senior traders, and he did it hundreds of times with their consent, according to the release.
“This defendant was involved in manipulating the precious metals commodity markets for several years, and I thank the FBI for its diligent investigation of this matter and its commitment to hold accountable those who use technology to their advantage to cheat these markets,” said U.S. Attorney John H. Durham.