Criminal Sentencing of Former J.P. Morgan Chase Precious Metals Trader Delayed as Federal Probe Continues
The comments below are an edited and abridged synopsis of an article by Dawn Giel
The criminal sentencing of former J.P. Morgan Chase precious metals trader John Edmonds has been postponed six more months, to December, as federal investigators continue to probe possible manipulation of metals markets.
Edmonds pleaded guilty in October to working with other unnamed co-conspirators to manipulate the prices of gold, silver, platinum and palladium futures contracts between 2009 and 2015 while employed at J.P. Morgan.
Edmonds admitted learning illegal trading tactics from senior traders, and to using those tactics with the knowledge and consent of supervisors.
His sentencing has been postponed twice, suggesting he is continuing to cooperate with prosecutors in their investigation. No one else has been charged.
On the heels of his plea, multiple lawsuits were filed against J.P. Morgan and the bank’s metals traders, accusing the bank of illegally manipulating precious metals markets for years. Edmonds’ admissions echo allegations made in a similar 2015 suit filed against the bank by a hedge fund manager and two commodity traders.
All of the lawsuits were put on hold until May 31 by the federal judges overseeing each case at the request of prosecutors, who argued they could interfere with the criminal probe.
Prosecutors plan to request an extension of the stay in the civil suit proceedings, according to a source.