Traders charged in $60M fraud case
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.