A former J.P. Morgan Chase Trader has admitted to manipulating American markets of a number of precious metals for about seven years – and he has implicated his supervisors at the bank.
John Edmonds, 36, charged himself with a plunder of commodity fraud and one counts each conspiracy to commit fraud, prism manipulation and spoofing, according to a Tuesday solution by the US Department of Justice. Edmonds spent 13 years on New York-based JP Morgan until he left last year, according to his LinkedIn account.
"For years, John Edmonds has engaged in a sophisticated order to manipulate the precious metals market, futures contracts for their own gain by placing orders that were never meant to be executed, "Assistant Attorney General Secretary Brian Benczkowski said in the release.
Notice for JP Morgan, the world's largest investment bank by income: Edmonds, a relatively younger employee titled vice president, said that he learned this practice for more senior traders and that his supervisors at the firm knew about his hand
Edmonds allegedly guilty under a loading document known as an "information." Prosecutors routinely use them to charge defendants who have agreed to collaborate with an ongoing investigation by other persons or entities.
His punishment is scheduled for December 19th. Edmonds faces up to 30 years in jail, but will probably have less time than that. The accused was arrested on 9 October and unsealed on Tuesday.
New York-based J.P. Morgan refused to comment on the matter through a spokesman. It was reported earlier by the Financial Times.
J.P. Morgan only learned about this case recently, according to a person with knowledge of the matter. A recent regulation from the bank did nothing about the problem.