- JP Morgan Gold Trading Boss & Former LBMA Board Member Found Guilty by US Jury
by Ronan Manly, https://www.bullionstar.com/
In a major embarrassment for banking giant JP Morgan and the London Bullion Market Association (LBMA), a federal jury in a US criminal trial has convicted Michael Nowak, global head of JP Morgan’s precious metals trading and former LBMA board member, on 13 counts of attempted price manipulation, commodities fraud, wire fraud, and spoofing prices in the gold, silver, platinum and palladium futures markets.
The same criminal trial jury, in a trial which was presided over by federal judge Edmond E. Chang of the United States District Court for the Northern District of Illinois, also convicted Nowak’s colleague and JP Morgan precious metals trader, Gregg Smith, on 11 counts of attempted price manipulation, commodities fraud, wire fraud, and spoofing. In a US federal trial, the jury the verdict has to be unanimous.
The charges against the JP Morgan global precious metals trading desk traders were brought by the US Government’s Department of Justice (DoJ) Criminal Division in a trial officially called “United States v. Smith (1:19-cr-00669)”. While the jury’s verdict found the two traders guilty of price manipulation, commodities fraud, wire fraud and spoofing, the jury also found both Nowak and Smith not guilty under one count each of a RICO conspiracy (the Racketeering Act) and a 371 conspiracy (conspiracy to defraud the United States).