CFTC Concludes Civil Case Against Former JPMorgan Metals Traders

The U.S. Commodity Futures Trading Commission (CFTC) has closed its long-running civil enforcement case against former JPMorgan precious-metals traders Michael Nowak and Gregg Smith, more than six years after the lawsuit was filed.

On December 22, 2025, a U.S. federal court approved consent judgments resolving the claims. Under the settlements, Smith agreed to pay a $200,000 civil penalty, is permanently barred from spoofing, and faces a three-year ban from trading or engaging in activities subject to CFTC regulation. Nowak agreed to pay a $150,000 penalty, is permanently enjoined from spoofing, and is subject to a six-month trading and registration ban.

The CFTC had alleged that between 2008 and 2015, the two traders placed and canceled large precious-metals futures orders on CME Group exchanges to create false market signals and benefit their genuine trades.

Although the financial penalties are modest, the permanent injunctions and trading restrictions effectively bar both men from returning to regulated derivatives markets, formally closing one of the CFTC’s longest-running spoofing cases.