Wacker vs. JPM lawsuit

[pmbug]

On June 29, 2016, US District Court Judge Paul Engelmayer dismissed a lawsuit against JP Morgan Chase & Co. which alleged that the bank had engaged in extensive manipulation of the price of silver, in violation of both state and federal antitrust laws. The plaintiffs appealed. On February 1, 2017, the US Appeals Court for the 2nd Circuit Court of Appeals held that their complaint contained sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face. This reverses the lower court and revives the lawsuit.
...

http*://averybgoodman.com/myblog/2017/02/03/jp-morgan-silver-manipulation-lawsuit-revived-by-appeals-court/

From the court's decision:

...
The District Court concluded that Plaintiffs failed plausibly to allege the element of “willful acquisition or maintenance of monopoly power” or “anticompetitive conduct” as required to state a claim under Sherman Act § 2 and NY GBL § 340. Shak v. JPMorgan Chase & Co. et al., Nos. 15 Civ. 992, 15 Civ. 994, 15 Civ. 995, 2016 WL 3637105, at *10 (S.D.N.Y. June 29, 2016) hereinafter “District Court Opinion”); see also Shak v. JPMorgan Chase & Co., 156 F. Supp. 3d 462, 490 (S.D.N.Y. 2016). Specifically, it held that Plaintiffs did not sufficiently plead that Defendants intended to rig the market at their counterparties’ expense, or that Defendants made “uneconomic bids” in the first instance. We disagree.
...

http*://averybgoodman.com/myblog/wp-content/uploads/2017/02/16-2482_so-Wacker-v-JP-Morgan-Silver-Manipulation-Opinion.pdf



Note: The source links no longer exist as the averybgoodman.com website appears to be defunct.

 

[rblong2us]

Can you translate this Bug ?
Kinda going over my head

I was rather hoping it would be about compaction plant blatting JPM employees into a thin layer .....
Wishful thinking obviously

 

[pmbug]

Lawsuit alleges JPM manipulated silver market. Judge in a lower court that was hearing the case dismissed the case because of, essentially, insufficient evidence. Appeals court reviewed the case and reversed the lower court's ruling.

So, the case will proceed. JPM will now have to face discovery. Plaintiffs will be able to demand JPM produce all manner of internal documents related to their trading desks and business as well as answer questions under oath.

 

[pmbug]

A history of what has happened with this case can be found here:

Wacker v. JPMorgan Chase & Co. et al

Parties, docket activity and news coverage of federal case Wacker v. JPMorgan Chase & Co. et al, case number 1:15-cv-00994, from New York Southern Court.

www.law360.com

It looks like the case was settled in 2020:

J.P. Morgan settles lawsuit that accused firm of 'spoofing' precious metals markets trades

J.P. Morgan settled a suit accusing the bank of "spoofing" trades in the silver futures market. The suit was filed by hedge fund manager Daniel Shak and two commodity traders.

www.cnbc.com

 

[searcher]

JP Morgan Gold Traders Contempt for the Law, Plan to Appeal their Convictions​

16 Apr 2023 23:32

Over the last few years, those in the precious metals investor community who believed that precious metals prices were being manipulated felt vindicated following a series of prosecutions of leading investment banks and their traders by US authorities such as the Department of Justice (DoJ), and Federal Bureau of Investigation (FBI), not least the successful convictions of precious metals traders who worked for JP Morgan.

These trader convictions included:

• A successful US criminal trial prosecution by a federal jury of Michael Nowak (former head of JP Morgan’s precious metals trading desk), and Gregg Smith (former JP Morgan precious metals trader) in August 2022.

Nowak was convicted for 13 counts of attempted price manipulation, commodities fraud, wire fraud, and spoofing prices in the gold, silver, platinum and palladium futures markets.

Smith was convicted of 11 counts of attempted price manipulation, commodities fraud, wire fraud, and spoofing.

More:

JP Morgan Gold Traders Contempt for the Law, Plan to Appeal their Convictions

Despite unamimous federal convictions and overwhelming testimony, JP Morgan gold traders display contempt for the law in pursuing appeals.

www.bullionstar.us

 

[searcher]

Former J.P. Morgan Precious Metals Traders Sentenced to Prison​

Two former precious metals traders at JPMorgan Chase & Co. (JPMorgan) were sentenced today for engaging in fraud, attempted price manipulation, and spoofing as part of a market manipulation scheme that spanned over eight years, involved tens of thousands of unlawful trading sequences, and resulted in over $10 million in losses to market participants.

Gregg Smith, 59, of Scarsdale, New York, was sentenced to two years in prison and a $50,000 fine. Michael Nowak, 49, of Montclair, New Jersey, was sentenced to one year and one day in prison and a $35,000 fine.

More:

Former J.P. Morgan Precious Metals Traders Sentenced to Prison

www.justice.gov

 

[pmbug]

Those punishments were definitely proportional to the damages suffered by the victims of the crimes. /sarc

 

[searcher]

Former JPMorgan gold trader sentenced in ongoing spoofing crackdown By Investing.com

Former JPMorgan gold trader sentenced in ongoing spoofing crackdown

www.investing.com

 

[pmbug]

6 months in jail for 3 years of spoofed trades. That will teach him! When he gets out in 4 months he'll be living large on the beach earning 20%.

 

[searcher]

JP Morgan Gold Traders go to Jail, while JP Morgan exits DoJ ‘Sin Bin’​

16 Oct 2023 06:28

There have been some interesting developments in the long running saga of criminal prosecutions by the US Department of Justice (DoJ) against J.P. Morgan and its lawbreaking traders for precious metals price manipulation and fraud.

While three of JP Morgan’s top former gold traders were sentenced to jail in late August and September 2023, JP Morgan itself walks free after now having exited its 3 year-long Deferred Prosecution Agreement (DFA) with the US Department of Justice (DoJ) – which was entered into in September 2019 and which expired in late September 2023.

This Deferred Prosecution Agreement relates to the September 2019 deal where JP Morgan paid US$ 920 million “in a criminal monetary penalty, criminal disgorgement, and victim compensation" to buy a ‘Get out of Jail Free card“, and avoided prosecution by the DoJ while admitting criminal wrongdoing.

With the expiry of this Agreement, JP Morgan now effectively gets out of the DoJ penalty ‘sin bin’, and will no longer have the DoJ looking over its shoulder, and will no longer have to submit annual compliance reviews to the DoJ.

Read the rest:

JP Morgan Gold Traders go to Jail, while JP Morgan exits DoJ ‘Sin Bin’

As ex JP Morgan precious metals traders go to jail, JP Morgan itself walks free from its 3 year deferred prosecution agreement with the DoJ.

www.bullionstar.us

 

[Chigg]

Can private Silver owners prove damages? If so class action?

 

[rblong2us]

heh

be careful JP Morgan doesnt take action against the class that 'took em down' by buying all that silver