Oct 12 (Reuters) – The U.S. Justice Department filed a lawsuit against three traders, alleging commodities fraud and futures-spoofing, a court filing showed on Friday.
Market participants, who traded in futures contracts, lost more than $60 million after spoof orders distorted prices, according to the filing. (https://bit.ly/2RMlHnw)
The indictment alleged that from around March 2012 through March 2014, Yuchun “Bruce” Mao, Kamaldeep Gandhi and Krishna Mohan conspired to mislead the markets for e-Mini S&P 500 and e Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange and E-Mini Dow futures contracts traded on the Chicago Board of Trade.
The three traders worked for the same firm at the time of the alleged misconduct, prosecutors said without naming the firm.
Two of the traders have agreed to plead guilty to the charges, the filing said. (Reporting by Bharath Manjesh in Bengaluru; Editing by Shailesh Kuber)