Traders charged with Chicago fu­tures fraud

The Washington Post - - ECONOMY & BUSINESS -

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.

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