Flotron works in Connecticut for the UBS Group but was taken into custody when visiting his girlfriend and his dentist in New Jersey. The charges consist of spoofing, commodities fraud, wire fraud and finally conspiracy. Flotron’s fraud has triggered the Justice Department’s interest in examining whether day traders are using unfavorable tactics to push metals prices in their favor.
Andre Flotron is accused of using a tactic call spoofing to influence the price of gold, silver, platinum and palladium. Spoofing is the placing of orders and canceling before execution. By doing this they attempt to make money from orders placed by other individuals from the small moves caused by the orders they intend to cancel.
“Flotron and his co-conspirators placed one or more large orders for precious metals future 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,” from the accuser. The complaint came from an ex-cooperator who claimed to be taught this tactic by Flotron during his first couple of weeks. This unnamed individual made a deal to help prosecutors with this spoofing of precious metals and currency markets.
Flotron’s fraud has fostered interest from Swiss regulators as well, but UBS has won immunity from any charges from US prosecutors in 2015 as part of a settlement in the Libor scandal. Flotron joined the Swiss bank in 1999 and worked in Zurich before coming to Connecticut. He eventually left UBS in 2014 for reasons not pertaining to this case.
Attorney, Marc Mukasey, is asking for a speedy trial which he expects his client, Andre Flotron, to be completely exonerated. This is not the first spoofing case this year. David Liew had similar conspiracy charges brought against him in June of this year. Liew plead guilty for manipulating contracts for gold, silver, platinum and palladium.
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