02 June 2017 - Ex-Deutsche trader aiding US spoof probe

Deutsche Bank
Source - https://www.bloomberg.com/news/articles/2017-06-02/trader-pleading-guilty-in-metals-probe-tied-to-deutsche-bank
Where - United States of America
Business line - Trading and Sales

A trader who pleaded guilty to manipulating futures contracts in precious metals did so whilst he was working at Deutsche Bank, reports Bloomberg.

The individual, David Liew, is now understood to be helping prosecutors with their investigation into the misconduct.

Liew pleaded guilty to fraud in a Chicago court on Thursday 1 June for his role in spoofing contracts in the gold, silver platinum and palladium markets. He has also admitted to front-running.

According to court papers, Liew claims to have worked with at least three other Deutsche Bank traders when carrying out the misconduct which involved hundreds of incidents of spoofing. He claims he was not the only person to be involved in the illicit activity and that he was taught by his co-workers.

The US Justice Department and the US Commodity Futures Trading Commission both settled an enforcement action against Liew on Friday 2 June and banned him from trading. Deutsche Bank was not charged in the spoofing case.

But Liew’s cooperation with prosecutors suggests there could be more issues ahead for Deutsche, which is still under investigation for allegedly allowing Russians to move US$10bn out of the country.