Two former Wall Street traders have been jailed for a multi-year fraud scheme involving precious metals.
Court documents show Edward Bases, 61, of New Canaan, Connecticut, a former senior trader at Deutsche Bank and Bank of America in New York, and John Pacilio, 59, of New York, a former senior trader at Bank of America and Morgan Stanley in New York, fraudulently pushed market prices up or down by placing large “spoof” orders in the precious metals futures markets that they did not intend to fill.
They carried out the scam to manipulate prices for their own gain and the banks' gain, as well as to defraud other traders on the Commodity Exchange Inc. and the New York Mercantile Exchange Inc., both of which are exchanges run by the CME Group.
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As a result of their behavior, other market participants were induced to trade at prices, quantities, and times that they otherwise would not have traded.
