Traders charged in $60M fraud case

San Antonio Express-News - - BUSINESS -

Three com­modi­ties traders were charged by the U.S. Jus­tice De­part­ment with or­ches­trat­ing a $60 mil­lion fraud that in­volved spoof­ing and con­spir­ing to ma­nip­u­late fu­tures con­tracts, ac­cord­ing to pros­e­cu­tors and court fil­ings in Hous­ton.

Yuchun “Bruce” Mao, a 39year-old Chi­nese na­tional, is ac­cused of work­ing with two other traders at his firm in a scheme to rig the pur­chase and sale of fu­tures con­tracts on the Chicago Mer­can­tile Ex­change and the Chicago Board of Trade, ac­cord­ing to an in­dict­ment made pub­lic Fri­day. A bench war­rant for Mao’s ar­rest was is­sued Wed­nes­day by a fed­eral judge, ac­cord­ing to court doc­u­ments.

The two oth­ers charged in the al­leged scheme, Kamaldeep Gandhi, 36, of Chicago and Kr­ishna Mo­han, 33, of New York, were pre­par­ing to plead guilty to re­lated charges, pros­e­cu­tors said.

The three traders worked for the same trad­ing firm at the time of the al­leged mis­con­duct, pros­e­cu­tors said with­out nam­ing the firm.

“Th­ese in­di­vid­u­als en­gaged in a so­phis­ti­cated scheme to dis­tort the fu­tures mar­ket for their own ad­van­tage by plac­ing large ‘spoofed’ trad­ing or­ders that they never in­tended to ex­e­cute,” As­sis­tant At­tor­ney Gen­eral Brian Benczkowski said in a writ­ten state­ment.

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