Former UBS Trader Arrested, Charged With Rigging Gold Prices

Tyler Durden's picture

Three years after we first identified the former head of UBS's gold desk in Zurich as someone directly implicated in the rigging of precious metals prices, Bloomberg reports that Andre Flotron, a Swiss resident, was arrested while visiting the U.S., according to people familiar with the matter.

Having been "on leave" since 2014, it appears Andre's hope that he was gone but "keen to return in due time" are now up in smoke.

 

As Bloomberg reports, Flotron was charged with conspiracy, wire fraud, commodities fraud and spoofing, according to a prepared complaint, and is the second person publicly charged in the U.S. investigation into the fixing of gold, silver, platinum and palladium prices.

As a a reminder, in June, David Liew, a former Deutsche Bank AG trader, pleaded guilty to fraud in federal court in Chicago for his role in the spoofing of contracts for gold, silver, platinum and palladium, according to court papers. Along with spoofing, he also acknowledged front-running customers’ orders.

Flotron’s arrest extends the Justice Department’s examination of whether bank traders conspired to rig interest-rate benchmarks and manipulate currency exchanges.

The probes, which led to guilty pleas and billions of dollars in payouts by some of the world’s biggest banks, also led prosecutors to begin investigating whether metals traders were placing orders without the intent of executing them in an attempt to move prices in their favor, a tactic known as spoofing.

“Flotron and his co-conspirators placed one or more large orders for precious metals futures contracts on one side of the market which, at the time Flotron and his co-conspirators placed the orders, they intended to cancel before execution,” the complaint said.

Swiss regulators have also shown an interest in Flotron, telling him in a2014 letter of a possible enforcement action, two people told Bloomberg News at the time.

It’s unclear whether Switzerland’s Financial Market Supervisory Authority disciplined him.

So it seems another conspiracy theory becoems conspiracy fact.

Thank you Monsieur Flotron for teaching us how market manipulators "trade" gold -  Recall from 2013, when Flotron was 'trading', what "a humble block of 2000 gold futs (GC) taking out the bid stack, and slamming the price of gold, managed to halt the gold market: one of the largest "asset" markets in the world in terms of total notional, for 20 seconds" looks like:

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jamesmmu's picture
Economic Breakdown… Imminent Major Monetary Event… The Time To Get Out Of Highly-inflated Garbage Assets Is Before Everyone Else Tries To

http://investmentwatchblog.com/economic-breakdown-imminent-major-monetar...

Croesus's picture

Hey, there's a surprise, another gold market rigger...but you know what?

The "price" is meaningless...

peddling-fiction's picture

So they arrest the little guy.

What about the gnomes of Zurich (Basel), that run things?

Pinto Currency's picture

Arrest the Bank of England that created the LBMA to destroy gold price discovery in 1987:

http://www.safehaven.com/article/42600/transition-of-price-discovery-in-...

This UBS guy is just a schlep.

MillionDollarButter's picture

Whose baby do you have to stab in the face to get THAT job?

Took Red Pill's picture

He's just a scapegoat. There are many other bigger fish still getting away with it.

Haus-Targaryen's picture

Until the LBMA defaults, there will be no price discovery. 

 

Handful of Dust's picture

"I'm taking one for the team."

 

~ Floton, quoting his idol Debbie Wasserman.

MagicHandPuppet's picture

I agree he's just a stooge... but if he doesn't help prosecute his "bosses", his neck will help break the rope in, none-the-less.

HowdyDoody's picture

Yet another non-US bankster under investigation by the US. How about looking into the US banksters?

YUNOSELL's picture

He's screwed -- I think this carries a sentence of zero years and zero days

French Bloke's picture

Funny, he looks just like a jU-BS bankster. Probably from Khazaria...

Mr. Magoo's picture

Just another scapegoat hiding the identity of the true culprits who will never be prosecuted

East Indian's picture

adjusted against time already spent on Earth...

MsCreant's picture

He's running his own side rigging that has little to do with the big rig, if you know what I am saying. Might take some of the heat off of the big riggers though.

beemasters's picture

Speaking of catching small fry...

At Least 11 Mayors Accused Of Child Sex-Related Crimes Since 2016

http://dailycaller.com/2017/09/13/at-least-11-mayors-accused-of-child-se...

bobbbny's picture

"Round up the usual suspects".

peddling-fiction's picture

Now if 11 Mayors got caught, how could we extrapolate and calculate how many did not?

MagicHandPuppet's picture

At 4 minutes into that video (hat tip BaBaBouy), this weasel, Jeff Christian, lays out a pretty nasty troll in response to the interviewer's question regarding all of the silver and gold price maniulation court cases we're seeing lately and asking isn't that proof enough that there's something fishy going on. His forked tongue response:

"That's proof enough that a lot of people who've lost money because they were long and wrong, and they refuse to believe that they could be that ignorant and be that wrong and long at the right time, rather than blame themselves for their own poor analysis of the world around them, they would rather blame some conspiracy."

 

Bay of Pigs's picture

Somebody call Marty Armstrong too!

shizzledizzle's picture

Someone shoule let him know he's not posting to the fiat admiration society website. LOL

HRClinton's picture

And that guy calls himself 'Christian'?

A family name just means "4 Sale, will work for smegma meals", I guess.

kliguy38's picture

Jeff Christian is such a douche

hedgelessWhoresMan's picture

Jeffery Christian an absolute worthless piece of $hit, always has been always will be.

Big Brother's picture

Did anyone else read this guy's last name as "Flo-tron"?

As used in a sentence:

"Debbie Wasserman-Schultz uses 'Flo-tron' brand tampons". 

Mr Hankey's picture

He's menopausal? Dude needs a haircut.

Syrin's picture

Poor d'bag.   Big enough to be noticed.   Not big enough to be untouchable.

MsCreant's picture

I looked at that pic and that was the first thing I thought-- what a douche'. And not even the refreshing kind.

ProstoDoZiemi's picture

He looks like a Lincoln Park douchebag out of Chicago, the douche vortex of the world

Stuck on Zero's picture

He was probably trying to manipulate gold prices higher and the government won't stand for that.

too_big_to_fail's picture

When using a retail account, you need to click review order. Once you click review, it is legal for HFT to trade your stock before you buy.

A fact I found out when placing a trade and some fine print showed up and I read it, by the time I was finished the trade timed out.

Then behold the 36 share trades cleared by HFT, 36 share trades kept repeating for about 20 minutes. It was a very low volume stock, that was how I know the 36 shares traded.

Big Brother's picture

That will happen inevitably as more volume of exchange moves to the physical gold exhange in Shanghai (which is clearly a more honest and transparent means).

giovanni_f's picture

as if the Chinese were interested in higher gold prices.

Justin Case's picture

FYI:

While Western monetary quacks have ridiculed gold until their credibility is no greater than what Bill Clinton said of Paula Jones’, the cocks have come home to roost. The LBMA and COMEX have defaulted on their gold contracts, with nary a sign of prosecution for their criminal actions.   Of course there will be no prosecutions because the London Bullion and Metals Association is backed by the same criminal governments which participated in the recent gold takedown. The same holds true of COMEX – the American precious metals exchange.   Most of our dear readers may not know what the COMEX and LBMA are all about, and may not understand the implications of these defaults. There are a number of reasons to be concerned but the two foremost in our mind is that the fiat and fractional currency scheme is under severe stress and the rule of law has been destroyed through the egregious breach of contract represented by the defaults.  

 

Officially there was no default because contracts were settled in cash. But such a settlement is not in the spirit of the contracts and is a breach in material of the agreements.

Hail Spode's picture

Yep. He is the J. Harvey Oswald of the Gold Rigging Scheme.

Anteater's picture

If you had true price discovery, you'd realize they are holding gold off the 

market, just like repossessed houses or DeBeers diamonds, in order to

create artificial scarcity and confound goldbuggerers into overpaying.

$1250 is more than enough fat. $1380 is Apple premium overpricing.

It's not a currency and can only be traded for cash by a -7% sell hit.

If your credit card clipped 7% on every buy, then it would be WWZ, lol.

Maybe you can trade ozs in some alley for a fast motorcycle, ha, ha.

Bay of Pigs's picture

That's fucking nonsense.

Troll harder.

yellensNIRPles's picture

How were you the first sperm? Just, how? Fucking retard.

MsCreant's picture

It is ONLY a sperm. That's how.

Still looking for an egg. It will be difficult to get there from his mother to be's empty eye socket, but he is going to try. If not, his big brother/father to be will try later. 

philosophers bone's picture

Well did you notice that the charges include "frontrunning" clients?   The only reason he was charged is he was frontrunning the Central Banks and that pissed them off.

If he just manipulates without front running no one would give a flying fuck as this would actually be encouraged!!

His sin was profiting through knowledge of CB manipulation.

HRClinton's picture

Re.. "Arrest the Bank of England that created the LBMA to destroy gold price discovery in 1987"

That's right! Its (((them short, hook-nosed, beady-eyed, greasy, greedy, shady inbreds))) at 'Gringots" - the Money Wizard bank - who have been screwing us "Muggles" for decades. If not centuries. 

Arrest and prosecute them now!  Of course (((they))) refer to every lawful prosecution as persecution. 

realmoney2015's picture

What about the Fed and central banks that rigged the entire monetary system? 

To end the manipulation, we need to end the Fed. When we end the Fed, we need a sound monetary system based on real mkney, gold and silver. It cannot be inflated and devalued. It cannot be created out of thin out to pay for wars and social programs (or to line the pockets of the establishment). 

Help us spread the message of ending the Fed! Help your family and friends understand the value of real money with candles with silver coin prizes: www.scentsaverscandles.com

It will not be an easy battle. They will.not give up the power of prayer money easily. We first need to raise awareness and spread ye message and then demand a change (aka follow the Constitution that states only gold and silver can be legal tender).

veritas semper vinces's picture

They are in the government ,now.Officially. They MAGA!

Overflow-admin's picture

Someone is thinking about the Bank for International Settlements here!

Call the thought police quick!!!