Second Former Deutsche Bank Trader Gets Sentenced to Prison for Fraud

A second former Deutsche Bank commodities trader was sentenced by a US federal jury to 12 months and a day in prison for a scheme to commit wire fraud affecting a financial institution. According to a press release published by the US Department of Justice (DoJ), Cedric Chanu, 42, from France and the United Arab Emirates, received the sentence on Monday, who was convicted on September 25, 2020.

The investigation unveiled that Chanu, who was employed in Singapore by the financial institution and later in London, engaged in a scheme to defraud other traders on the public Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, Commodity Exchange Inc.

“The defendant, together with James Vorley and other Deutsche Bank traders, defrauded other market participants through a deceptive trading practice known as ‘Spoofing Spoofing Spoofing deals with information or network security, which is defined as a situation in which an entity or program successfully falsifies data to gain an illegitimate advantage.This falls into the category of scammers and hacking. Spoofing is the act of disguising an email or other internet communication, making the receiver think that it is coming from one source when it is from another. Spoofing, in many cases, allow fraudsters into your computer or network by deceit. This can apply to emails Spoofing deals with information or network security, which is defined as a situation in which an entity or program successfully falsifies data to gain an illegitimate advantage.This falls into the category of scammers and hacking. Spoofing is the act of disguising an email or other internet communication, making the receiver think that it is coming from one source when it is from another. Spoofing, in many cases, allow fraudsters into your computer or network by deceit. This can apply to emails Read this Term.’ Specifically, Chanu placed fraudulent orders that he did not intend to execute in order to create the false appearance of supply and demand and to induce other traders to transact at prices, quantities and times that they otherwise would not have traded. Vorley was sentenced on June 21, also to 12 months and a day in prison,” the Department of Justice stated.

Vorley's Participation

In fact, Vorley was in the center of the scheme, placing fraudulent orders that he did not intend to execute. These fake orders created a false appearance of the supply and demand in the market, allowing the Deutsche bank traders to manipulate prices. The FBI’s New York Field Office was in charge of the investigation that led to Chanu’s sentence by a federal jury.

The US Securities and Commission Exchange (SEC) has recently been on an active campaign of rewarding whistleblowers who collaborate with financial-related crimes. Recently, the watchdog awarded around $5.3 million to whistleblowers who have assisted them by providing information regarding enforcement proceedings. Early this year, the tip-off from an insider led the US SEC to bust a financial fraud, which concluded with the return of ‘a large amount of money’ to the victims.