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U.S. Spoofing Crackdown Nets Guilty Plea by Former Trader (1)

July 26, 2019, 6:16 PMUpdated: July 26, 2019, 8:37 PM

A former trader at Bear Stearns and Bank of Nova Scotia pleaded guilty to trying to manipulate prices in the precious-metals market, as the U.S. continues to crack down on spoofing.

Corey Flaum admitted placing thousands of orders for futures contracts in a nine-year scheme starting around June 2007 while working at the two banks. His crime carries a maximum sentence of 10 years in prison.

Regulators and prosecutors have grown increasingly worried about spoofing -- the creation of false demand that pushes a security’s price up or down to generate profits -- as a threat to financial markets in ...

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