Scotiabank Faces Class Action Over Precious Metal Spoofing (1)

The Bank of Nova Scotia has been hit with a proposed class action in the U.S. District Court for the Northern District of Illinois over allegations that it manipulated publicly traded futures contracts for gold and other precious metals from 2008 through July 2016.

The lawsuit, filed Sept. 4, names the Bank of Nova Scotia, Scotia Capital (USA), Scotia Holdings (US), the Bank of Nova Scotia Trust Company of New York, as well as Corey Flaum and 50 “Doe” defendants.

Flaum, a former trader for Scotiabank, pleaded guilty in July 2019 to manipulating the precious metals market from roughly May ...