Ex-Wall Street Traders Ask 7th Cir. to Toss Fraud Convictions

Counsel for two men convicted of manipulating US commodities markets told the Seventh Circuit during oral argument on Thursday that they weren’t on notice that their conduct would be considered criminal fraud when they did it.

John Pacilio and Edward Bases were convicted of manipulating US commodities markets for precious metals futures contracts following a 2021 jury trial. On appeal, they claim it was reasonable for them to believe that their trading activity was lawful.

According to prosecutors, Pacilio and Bases engaged in “spoofing,” a trading practice defined by the Dodd-Frank Act as placing orders with the intent to cancel ...