{"id":6323,"date":"2014-10-02T17:25:33","date_gmt":"2014-10-03T00:25:33","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=6323"},"modified":"2014-10-02T17:25:35","modified_gmt":"2014-10-03T00:25:35","slug":"n-j-man-indicted-spoofing-manipulate-commodities-market-prices-false-signals","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=6323","title":{"rendered":"N.J. Man Indicted for “Spoofing” to Manipulate Commodities Market Prices With False Signals"},"content":{"rendered":"

\"FBI<\/a>CHICAGO<\/strong>\u2014 A New Jersey man who engaged in “spoofing” or high-frequency trading to illegally manipulate commodities futures prices with false signals to make $1.6 million in profits has been indicted, officials announced Thursday.<\/p>\n

Michael Coscia<\/strong>, 52, of Rumson, N.J., a registered commodities trader since 1988, was charged with six counts of commodities fraud and six counts of \u201cspoofing\u201d in a 12-count indictment returned Wednesday by a federal grand jury<\/p>\n

Coscia, was the manager and sole owner of the former Panther Energy Trading LLC, of Red Bank, N.J., which he formed in 2007.<\/p>\n

He illegally made nearly $1.6 million as a result of trading orders he placed through CME Group and European futures markets in 2011.<\/p>\n

This case is the \u00a0first-of-its-kind prosecution under the anti-spoofing provision that was added to the Commodity Exchange Act by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.<\/p>\n

Federal officials stated in the indictment that spoofing is high-frequency trading is a form of automated trading that uses computer algorithms for decision-making and placing a high volume of trading orders, quotes, or cancelation of orders in milliseconds.<\/p>\n

Also the indictment alleges that Coscia designed two computer programs he allegedly used in 17 different CME Group markets and three different markets on the London-based ICE Futures Europe exchange, including gold, soybean meal, soybean oil, high-grade copper, Euro FX and Pounds FX currency futures, to implement his fraudulent strategy.<\/p>\n

It was illegal for traders to place orders in the form of \u201cbids\u201d to buy or \u201coffers\u201d to sell a futures contract with the intent to cancel the bid or offer before execution.<\/p>\n

\u201cTraders and investors deserve a level playing field, and when the field is tilted by market manipulators, regardless of their speed or sophistication, we will prosecute criminal violations to help ensure fairness and restore market integrity,\u201d U.S. Attorney Zachary Fardon said.<\/p>\n

Adding, \u201cThis case reflects the reasons why, earlier this year, we established a Securities and Commodities Fraud Section, which is dedicated to protecting markets and preserving investors\u2019 confidence.”<\/p>\n