Former UBS Trader Arrested, Charged With Rigging Gold Prices

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:

Comments

MagicHandPuppet BaBaBouy Wed, 09/13/2017 - 16:10 Permalink

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." 

In reply to by BaBaBouy

too_big_to_fail Stuck on Zero Wed, 09/13/2017 - 16:49 Permalink

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.

In reply to by Stuck on Zero

Justin Case Haus-Targaryen Wed, 09/13/2017 - 17:32 Permalink

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.

In reply to by Haus-Targaryen

Anteater Pinto Currency Wed, 09/13/2017 - 15:29 Permalink

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 tocreate 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.

In reply to by Pinto Currency

HRClinton Pinto Currency Wed, 09/13/2017 - 16:27 Permalink

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. 

In reply to by Pinto Currency

realmoney2015 peddling-fiction Wed, 09/13/2017 - 15:19 Permalink

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.comIt 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).

In reply to by peddling-fiction