Traders charged with Chicago futures fraud
Three commodities traders were charged by the 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, 39, a Chinese national, is accused of working with two other traders at his firm to rig the purchase and sale of futures contracts on the Chicago Mercantile Exchange and Chicago Board of Trade, said an indictment made public Friday. A bench warrant for Mao’s arrest was issued Wednesday by a federal judge, court documents said.
The two others charged, 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 firm at the time of the alleged misconduct, prosecutors said, without naming the firm.
Prosecutors said Mao’s alleged spoofing scheme ran from March 2012 through March 2014 and involved dozens of fraudulent orders that were canceled before execution. The victim of the alleged manipulation is an unidentified finance company with offices in Houston, according to the indictment.