Earlier this week, yet another person who belonged to the world renowned company, J.P. Morgan was in trouble again. Christian Trunz, from London pleaded guilty Tuesday to criminal charges for manipulating precious metals markets for over 8 years in the latest in the federal investigation against spoofing, in which he Trunz admitted to.
Spoofing is a method of trading that involves making orders but then before they get shipped, you cancel them, simply to drive the price of something up. This actually is very common in the market on things like E-Bay when people have been found to do this to drive up prices, but it still a very illegal act when it comes to affecting the price of a commodity so you can get a greater benefit from a purchase.
Trunz resigned from J.P. Morgan and he learned to spoof from higher senior traders in the company and did it with the knowledge and consent of his own supervisors, which puts the entire company of J.P. Morgan, who refused to comment, in the limelight.
Earlier this week the U.S. Justice Department has been investigating many big banks with the cooperation of traders that pled guilty for spoofing. Over the past half a decade, prosecutors in federal courts have brought twelve cases forward against over 15 defendants.
As far as J.P. Morgan is concerned, Trunz plea is the second that J.P. Morgan has faced so far, with another previous employee last year that also admitted the prices of some of our most precious metals; gold, silver, platinum and palladium.