Two former employees of a global financial institution were charged in an indictment filed today for their alleged participation in fraudulent and deceptive trading in previous metals futures contracts, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William Sweeney of the FBI’s New York Field Office.
Edward Bases, 56, of New Canaan, Connecticut, and John Pacilio, 54, of Southport, Connecticut, were each charged with one count of conspiracy to commit wire fraud affecting a financial institution and commodities fraud. Bases and Pacilio were also charged with one count of commodities fraud each. Pacilio was further charged with five counts of spoofing.
The indictment alleges that Bases and Pacilio, who were employed as precious metals traders at banks in New York, New York, engaged in multi-year schemes to mislead the market for precious metals futures traded on the Commodity Exchange Inc (COMEX), which was an exchange run by the Chicago Mercantile Exchange Group The defendants and their co-conspirators are alleged to have defrauded market participants by placing orders that they did not intend to execute in order to create the appearance of false supply and demand and to induce other market participants to trade at prices, quantities and times that they otherwise would not have traded.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s New York Field Office. Trial Attorneys Ankush Khardori and Jeffery Le Riche of the Criminal Division’s Fraud Section are prosecuting the case
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.