More on J.P. Morgan

I would strongly recommend that both Bob Moriarty and Chris Temple read this article. Big Al asks them the question:”Just more fantasy stories, guys?” I realize that neither one of you guys particularly cares for Murphy, but remember that all he did was quote the story as published by Bloomberg. But then again, you two seem to get a kick out of bringing shame to Big Al. Fortunately for him this time your efforts backfired.

Two current and one former JPMorgan Chase employees have been arrested and charged by the FBI for their alleged participation in a racketeering conspiracy in connection with the manipulation of the markets for precious metals.

Michael Nowak, 45, and Gregg Smith, 55, are on leave, making them the third and fourth JPMorgan employees to be connected to the criminal investigation, which  has resulted in guilty pleas from two former JPMorgan metals traders. 

Christopher Jordan, 47, who left the company in 2009, was an executive director and trader on JPMorgan’s precious metals desk in New York. 

All three were arrested as part of a spoofing investigation. Spoofing involves placing bids to buy or offers to sell contracts with the intent to cancel them before execution.

By creating an illusion of demand, spoofers can influence prices to benefit their market positions. 

‘The defendants and others allegedly engaged in a massive, multi-year scheme to manipulate the market for precious metals futures contracts and defraud market participants,’ said Assistant Attorney General Brian A. Benczkowski.  

Authorities said the alleged criminal activity spanned over eight years and involved thousands of unlawful trading sequences.

Nowak is a managing director and global head of base and precious metals trading in New York for the bank, according to his LinkedIn profile. 

According to the source, Nowak was placed on leave around late August. Smith was an executive director and trader on JPMorgan’s precious metals desk in New York. 

Authorities said in the thousands of sequences, the employees ‘placed deceptive orders for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc and Commodity Exchange Inc, which are commodities exchanges operated by CME Group Inc’. 

‘This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling precious metals futures contracts at quantities, prices and times that they otherwise likely would not have traded’, the indictment alleges. 

JPMorgan, one of the largest gold trading banks in the world, said in an August regulatory filing it is ‘responding to and cooperating with’ investigations by various authorities, including the Department of Justice, relating to trading practices in the metals markets.

There has been a surge in spoofing-related prosecutions in recent years.

Bank of America Corp’s Merrill Lynch commodities unit, for example, paid $25million in July to resolve actions by the US Commodities Futures Trading Commission and Department of Justice for precious metals spoofing trades between 2008 and 2014.

The Department of Justice already secured guilty pleas from two former JPMorgan metals traders, Christiaan Trunz and John Edmonds. 

Authorities said in the thousands of sequences, the employees ‘placed deceptive orders for gold (file image), silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc and Commodity Exchange Inc

The announcement of their pleas, in August 2019 and October 2018, respectively, indicated that they had collaborated on spoofing with their supervisors, who were not named.

Trunz placed ‘thousands’ of orders he did not plan to execute for gold, silver, platinum and palladium futures contracts between 2007 and 2016, and had learned to spoof from more senior traders, the Department of Justice said in August, adding that he was cooperating with ‘the ongoing investigation’.

Nowak and another former JPMorgan trader, Robert Gottlieb, are named as defendants in at least one other civil suit related to metals spoofing at JPMorgan. 

A December 2018 class action complaint, for example, said that Edmonds, Nowak, Gottlieb and others made hundreds of spoof orders or more as ‘part of a conspiracy’ with the bank and other internal traders.

An attorney for Gottlieb did not respond to a request for comment. Koch Industries Inc, Gottlieb’s last known employer, did not immediately respond to a request for comment. 

JPMorgan has also been sued separately by a group of investors, who said they lost money as a result of the bank spoofing its trades. 

In one of the lawsuits brought against the bank by Daniel Shak, a metals trader, Shak estimated he suffered immediate losses of around $25million after he was forced to liquidate his position as a result of JPMorgan’s market manipulation, a court document showed.

The civil suits against JPMorgan have been stayed pending the Department of Justice probe. 

Attorneys for Nowak did not respond to a request for comment. 

A call to Smith’s number at the bank was answered by an employee at the metals desk who directed questions to the bank’s public relations department. A spokesman for the Department of Justice declined to comment.

All three defendants were charged with one count of conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity; one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing; one count of bank fraud and one count of wire fraud affecting a financial institution. 

In addition, Smith and Nowak were each charged with one count of attempted price manipulation, one count of commodities fraud and one count of spoofing. 


Comments:
  1. On September 17, 2019 at 4:51 pm,
    OOTB Jerry says:

    On September 17, 2019 at 6:05 am,
    OOTB Jerry says:
    Here is the Law Suit………………See the dates and times
    https://www.justice.gov/opa/press-release/file/1202466/download

    Reply to this commen

  2. On September 17, 2019 at 6:44 pm,
    CFS says:

    In brief, CFTC data indicate that JPMorgan, trading for its own proprietary benefit has amassed a trading track record which has been impossibly perfect for ten years running, ever since acquiring the failed investment bank, Bear Stearns, in March 2008. JPMorgan has never taken a loss when adding short positions in COMEX silver futures over the past ten years, only profits. It has been able to do so by being allowed by the CFTC to add as many new short positions as necessary to cap every silver price rally over the past decade, until the weight of its additional short sales finally causes prices to decline, at which point JPMorgan then has bought back its added shorts at prices lower than sold short at originally, guaranteeing itself a profit.

    • On September 17, 2019 at 11:11 pm,
      Al Korelin says:

      Thanks CFS, I guess this adds a bit of credence to what Murphy is saying and takes a lot of credence away from Chris and Bob.

      I really appreciate this condensed version from you.

  3. On September 18, 2019 at 2:46 am,
    LPG says:

    Big Al,

    Seems like you have either memory loss, or you confuse words, or you lack an understanding of words’ meaning (or a combination of those).

    GATA and your “long time friend” Bill Murphy talked ad nauseum, for years, about price SUPPRESSION for the precious metals.

    The article you pasted refers to price manipulation, via SPOOFING (if you are still not sure about what this mean or imply, do some research about it – spoiler alert: spoofing can be used to generate profits with both ways of an asset price’s move: both up AND down).

    You wrote:
    ” I guess this adds a bit of credence to what Murphy is saying and takes a lot of credence away from Chris and Bob. ”
    As far as Bob is concerned, he – as far as I recall from reading his writings – always mentioned (and rightfully so) that ALL markets are manipulated, ALL the time. If you don’t get that, I’ve got a few bridges to sell to you.

    GATA always talked about price “SUPPRESSION”. Funny enough, now that PM prices are rising, GATA/Murphy don’t really mention that word anymore: they more commonly use the word “manipulation”. It feels a bit similar to those who used to say “global warming”, and now that many places in the world are getting colder temperatues, these same people just say “climate change”.
    So I guess the question you need to ask yourself is: do you understand the difference in meaning between PRICE SUPPRESSION and PRICE MANIPULATION ?

    To me, Bill Murphy’s interview brings nothing – NOTHING.
    Talking about manipulation in the PM markets, as in ANY market, is like saying the “sun is hot” or “water is wet”. While all 3 statements are perfectly true, they are value less.

    To me, to believe that the article you posted here (duuuuuuhhhhh) “adds a bit of credence to what Murphy is saying and takes a lot of credence away from Chris and Bob” is honestly an insult to Bob and Chris’ intelligence.
    And to me, it doesn’t look good on you, nor does it look quite good on Kereport.

    Finally, as you said it yourself about Bill Murphy: “all he did was quote the story as published by Bloomberg.”
    Is that seriously the only value you can bring via Kereport today? Are you not aspiring for something a bit more “valuable” for the site?
    Seems like you enjoy having Kereport picking-up news articles, and then comment on those articles. Don’t you think that it is kind of equivalent to “recycling the recycled” (news –> Bloomberg comment recycling the news –> Kereport comment recycling Bloomberg article). Is that the only value you can manage to bring to the table ?

    I tell you something: I used to check KEREPORT daily. I don’t anymore.
    However, to get valuable (investment) ideas, I check Bob’s site ( 321gold.com ) daily and, among other things, I subscribe to Chris Temple newsletter. Thet both helped me make nice returns over the years – simply, consistantly, with no BS, without the need to bring ideas like “price suppression, price suppression… priiiiiice supppprrrrrreessssssionnnnnn !!! “.
    Beside, I enjoy both Bob and Chris: they are honest, straight talkers. I don’t put your old friend Bill Murphy (who apparently stole from his previous clients $$$) in the same category, but that’s just me…

    Wake Up Big Al.

    Best as always,

    LPG

  4. On September 18, 2019 at 3:22 am,
    LPG says:

    Avi’s latest piece on Priiiiiiiiice Supprressssssiiooonn !!!

    http://news.goldseek.com/GoldSeek/1568808061.php

    Like Bob Moriarty, Chris Temple, Avi Gilburt is ALSO someone who assists me making dough regularly.

    Value.

    LPG

  5. On September 18, 2019 at 3:23 am,
    Robert Moriarty says:

    If you wanted to improve the reputation of the Kereport and to show both sides of every story we need to find someone with the experience of Jeffrey Epstein to discuss with you the benefits of becoming a sugar daddy.

    You need to broaden your education. You spend too much time listening to mainstream media manipulation and too little time learning to think for yourself. Here is a quote from a book that would have helped you a lot but you were too busy or too lazy to read it. It has the highest ratings of any book I have ever seen on Amazon and I buy hundreds of books a year on Amazon.

    1. All markets are manipulated all of the time by everybody involved. If you can’t handle that, don’t invest.

    Are you now taking the position that Bill Murphy was dead right about JPM and the best trading advice he would give over the last ten years was that wise investors should have ridden the wave with JPM and shorted silver along with them?

  6. On September 18, 2019 at 5:30 am,
    OOTB Jerry says:

    Well,with all due respect……the only thing I can say.
    IF,, it was not for BIG OWL…….most of you,,, would have one less opportunity to share
    YOUR THOUGHTS and OPINIONS..

    LPG……….you negate the work……of Matthew and Ex……which provide content ever day…..Givers not takers…..JMO
    It is a shame, you have decided not to frequent the KER, …your input was appreciated before…..Always liked your thoughts……….Respectfully………..OOTB Jerry

  7. On September 18, 2019 at 6:08 am,
    LPG says:

    Love you too Jerry.

    Please note that I did not decide “not to frequent the KER”.
    I wrote that “I used to check Kereport DAILY. I don’t anymore.” —-> meaning: I don’t check it DAILY.

    Best to you as always,

    LPG

    • On September 18, 2019 at 6:21 am,
      OOTB Jerry says:

      LPG…….Thanks for the reply……..Hope you come back more often, and share your thoughts…….Best…OOTB

    • On September 18, 2019 at 9:47 am,
      bonzo barzini says:

      Allo LPG, glad to know you are still alive. Don’t forget one of the best things about kereport is Matthew’s sage advice on guns and ammo, and Doc’s medical advice.
      Today Clive Maund seconds Bob M.’s belief that the attack on Saudi oil assets is a false flag to get us into a war with Iran. After the sinking of the Maine, Pearl Harbor, the JFK murder, the Gulf of Tonkin, 9/11, war in Iraq, Benghazi, and the FBI-CIA coup against Trump, how can anyone believe anything our government says? Peace!

      • On September 18, 2019 at 10:19 am,
        OOTB Jerry says:
        • On September 18, 2019 at 10:22 am,
          OOTB Jerry says:

          An “Act Of War” By Iran: Pompeo After Arriving In Jeddah

      • On September 18, 2019 at 11:03 am,
        b says:

        A person would be foolish not to think the attack could be a false flag.

        Until proven otherwise I,m gonna continue to believe it was the Houthis.

      • On September 18, 2019 at 12:32 pm,
        LPG says:

        And I love you as well Bonzo.
        Hope all’s well on your side.
        Best to you,
        LPG

  8. On September 18, 2019 at 6:28 am,
    Dick Tracy says:

    Big Al, when somebody doesn’t agree with you, ( Chris and Bob) don’t take it as a personal attack, nobody is trying to shame you, they are simply disagreeing with your thinking. If you are part of the media and you are, you should remember to stand back from your emotions and think logically and rationally. DT

  9. On September 18, 2019 at 9:10 am,
    Chartster says:

    There is a sea change happening in the financial markets. The exposure of JPM trading desk would have never happened with the past corrupt regulators.

    Given the nature of the fraud regarding metals manipulation, and the amount of metal JPM holds…the RICO violations could result in asset forfeiture, and the metal holdings go back to the treasury.

    JPM most likely is going to be restructured.

  10. On September 18, 2019 at 9:42 am,
    Robert Moriarty says:

    Chartster:

    I have no doubt you mean well but HFT is all illegal through the use of spoofing and the SEC could care less. If J{PM hadn’t been manipulating the metals I would have been shocked.

    Wait until the dust settles. If JPM gets a $250 million fine they will take it from their postage budget and smile. I don’t think I have ever even read about serious criminal charges for financial fraud in the last 20 years. Look at the GFC in 2008, what was so remarkable was the total fraud and no one went to jail.

    Don’t count your chickens before they hatch has always been good advice.

    • On September 18, 2019 at 10:30 am,
      Chartster says:

      Bob,
      All I know is, since Trump was elected the DOJ, FBI, MSM, DNC, and multiple banks have been exposed for multiple crimes.
      The dems had to take the other side and become full blown commies (which we already knew they where) and try to hide under the name of socialists.
      Communism is the pig, socialism is lipstick on the pig.

      Trump exposes everyone, no one skates clean, unless you are clean.

      JPM will be restructured, as will the fed.

      • On September 18, 2019 at 11:04 am,
        OOTB Jerry says:

        Looks like they are expanding the investigation into other markets…….HUMMMMMMMMM
        https://www.zerohedge.com/commodities/regulators-expand-already-massive-precious-metals-manipulation-probe-other-markets

      • On September 18, 2019 at 11:06 am,
        Matthew says:

        Chartster, restructuring the Fed won’t make it less communistic. You should know that by now.

      • On September 18, 2019 at 11:11 am,
        Robert Moriarty says:

        Chartster:

        Do you remember the debates where Donald promised Hillary would be in jail? Hows that going? And when he swore up and down he would declassify the FISA warrants. Trump is not only an adulterer, he’s a serial bankrupt and a serial liar. I am 100% against the ongoing coup that started before the election and without a doubt he is not nearly as big a crook as Hillary but you may be disappointedted

  11. On September 18, 2019 at 10:05 am,
    CFS says:

    For evil to succeed, all it needs is for good men to do nothing.
    —Martin Luther King Jr.

  12. On September 18, 2019 at 11:22 am,
    Chartster says:

    Yes, I get the disappointment that we all have of watching the paint dry regarding some action against the deep state. We all want to see it cleaned up.

    They have to awaken the brainwashed public to what is going on. So far that has been working well. There are many people starting to see the Ponzi scheme and the time waisters in congress.

    I wish they would just rip the bandage off and get it all done, however, it’s too much information for people to comprehend if everything happened at once. The info will come out in a slow rollout. Epstein is a prime example, as those involved will be exposed slowly.

    • On September 18, 2019 at 2:41 pm,
      OOTB Jerry says:

      Chartster …………..I reposted you tape on Nixon……….
      Ties into what is going on presently…..
      There is a heck of a lot more going on than digging for rocks…… lol

  13. On September 18, 2019 at 4:36 pm,
    Robert Moriarty says:

    The experts comment on manipulation at JPM and guess what?

    First, the market manipulation of which the bank’s employees and supervisors stand accused — rigging prices largely by “spoofing” other traders — is not the sort of manipulation GATA long has complained about.

    And the experts saying that? Would be GATA.

    Al: Perhaps you owe me and Chris an apology. We have maintained all along that GATA’s version of manipulation/suppression was fiction and fully admitted like all markets gold and silver are manipulated. Even GATA agrees with us.

  14. On September 18, 2019 at 5:49 pm,
    OOTB Jerry says:

    FBI Assistant Director in Charge of the FBI’s New York Field Office commented that:

    “Smith, Nowak, Jordan, and their co-conspirators allegedly engaged in a complex scheme to trade precious metals in a way that negatively affected the natural balance of supply-and-demand.”

  15. On September 18, 2019 at 6:22 pm,
    OOTB Jerry says:

    https://www.zerohedge.com/markets/abject-corruption-exposing-financial-political-complex-protecting-its-own-gold-manipulation
    By now, you’ve heard of the indictment of three key JP Morgan employees and the charges of precious metals market manipulation.

    Well, I’ve just unearthed a nugget that will leave you speechless.

    If you’ve been around here for a while, you’ll recall my secondary role in 2012 of assisting Andrew Maguire in his quest to end the Banks’ ongoing gold and silver price manipulation.

    Though Andy had direct evidence from two whistleblowers inside JPM…and though this evidence was officially and legally summarized and submitted to the CFTC in August of 2012…the CFTC sat on the case. Their official “silver manipulation investigation” had dragged on to its fourth year and no end was in sight.

    • On September 18, 2019 at 6:23 pm,
      OOTB Jerry says:

      Then, in September of 2013, the CFTC suddenly closed the investigation and declared that there was “no viable basis to bring an enforcement action”. See this: https://www.cftc.gov/PressRoom/PressReleases/pr6709-13

      • On September 18, 2019 at 6:25 pm,
        OOTB Jerry says:

        The timing of this was suspect because just one day before, Andrew Maguire had appeared on The Keiser Report to disclose the information that the CFTC was seemingly ignoring. The video is below. The TFMR link posted the next day is here: https://www.tfmetalsreport.com/blog/5087/am-mk

        • On September 18, 2019 at 6:26 pm,
          OOTB Jerry says:

          During the investigation, the head of the CTFC’s Division of Enforcement was a man named David Meister. In a curious development, Mr. Meister quit the CFTC just one week after the silver investigation was closed. https://www.cftc.gov/PressRoom/PressReleases/pr6735-13