Former Deutsche Bank Traders Convicted of Spoofing Are Opposing Prison Sentences

Fazzaco has learned from the documents filed with the Illinois Northern District Court by James Vorley and Cedric Chanu, former Deutsche Bank traders convicted of spoofing, on June 11, 2021 that the defendants are trying to oppose the proposed prison sentences for them.

Previously in seeking the heavy prison term for the defendants, the Department of Justice (DOJ) alleged that Vorley and Chanu manipulated one of the world’s most important financial markets and defrauded other market participants for years. To boost their own trading profits and minimize their losses, they flooded the gold and silver futures exchange with billions of dollars of false orders.

​Forexway Launched the First-of-its-kind Animated Videos on Forex Trading

The DOJ noted that the defendants’ intent was to deceive other traders about the existence of genuine supply and demand, and push market prices in whatever direction benefited them and their employer. Their conduct was both deliberate and persistent, and was repeated thousands of times over five years.

However, the defendants stated that the DOJ, which is seeking a prison sentence of 57 to 71 months for each of the two, ignores several factors, including the history and character of the defendant and the types of sentences available; contemplates several unwarranted enhancements under Sentencing Guidelines (for example, the sophisticated means enhancement and the enhancement based on the number of victims); and mischaracterizes the nature and circumstances of the offense as compared to other cases. According to Vorley and Chanu, the appropriate sentence for them does not include imprisonment.

Specifically, Vorley pointed out that he was a relatively junior trader who had learned his trade on the job, surrounded by more senior traders and compliance officers, and he was never once told that he was doing anything improper. Vorley said neither he nor David Liew (former Deutsche Bank analyst) nor anyone else at Deutsche Bank thought they had to hide how they were trading from their supervisors, compliance, or the exchange, let alone law enforcement.

Vorley also faces an enforcement action by the CFTC, which pushed for a permanent trading and registration ban and significant civil monetary penalties on him.