The United States Commodity Futures Trading Commission (CFTC) may be approaching a resolution of its case against former Deutsche Bank traders James Vorley and Cedric Chanu.
According to a status report filed by the CFTC at the Illinois Northern District Court on July 9, 2021, the parties are in talks to settle the matter. The document, seen by FX News Group, states that the CFTC’s Division of Enforcement and counsel for defendants Vorley and Chanu have been engaged in good faith discussions regarding a potential resolution of the matter.
To avoid the unnecessary expenditure of Court and party resources, the parties request that the Court continue the stay to allow the parties additional time to explore a potential resolution.
The CFTC case against the traders was launched in January 2018. The regulator charged them with spoofing and engaging in a manipulative and deceptive scheme in the precious metals futures markets.
The CFTC Complaint alleges that beginning in at least May 2008 and continuing through at least July 2013, while employed at a large financial institution, Vorley and Chanu engaged in a manipulative and deceptive scheme while placing orders and trading in the precious metals futures markets on a registered entity. Specifically, in furtherance of the scheme, Vorley and Chanu repeatedly engaged in manipulative or deceptive acts and practices by spoofing (bidding or offering with the intent to cancel the bid or offer before execution).
This case has been stayed, except for document discovery, pending the conclusion of a parallel criminal proceeding. In June, Vorley and Chanu were each sentenced to a term of imprisonment of one year and one day.
As FX News Group has reported, James Vorley and Cedric Chanu are challenging their prison sentences. This becomes clear from documents filed by the traders on July 3, 2021 and July 6, 2021, at the Illinois Northern District Court.