Updated: Aug 28, 2022
By Shubhangi Dwivedi
On Wednesday, two former JP Morgan Chase & Co. traders were convicted of manipulating the global metal markets. In the court’s verdict, they were accused of spoofing.
Spoofing means swiftly putting in and withdrawing specific assets while buying and selling orders to make it look like there is a certain demand for them. It became an offense in 2010 when the Dodd-Frank Act was reconstructed after a financial crisis.
David Meister, Nowak’s lawyer said in a recent statement, “While we are gratified that the jury acquitted Mr. Nowak of racketeering and conspiracy, we are extremely disappointed by the jury's verdict on the whole.” Gregg Smith and Michael Nowak were also accused of commodities fraud, attempted price manipulation, and fraud involving telecommunications.