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CFTC Collects $2.69 Million in Spoofing Action

By | April 5, 2016

The CFTC announced that a federal court in New York issued a Consent Order imposing a permanent injunction against CFTC Defendants Heet Khara and Nasim Salim, residents of the United Arab Emirates (UAE), prohibiting them from engaging in spoofing in violation of the Commodity Exchange Act.

The Order requires Khara to pay a $1.38 million civil monetary penalty and Salim to pay a $1.31 million civil monetary penalty to settle CFTC charges of spoofing in the gold and silver futures markets. The Order also imposes permanent trading and registration bans on Khara and Salim.

According to the Order, between February 2015 and April 28, 2015, Defendants Khara and Salim, both individually and in a coordinated fashion, regularly placed larger aggregate orders for gold and silver contracts on the Commodity Exchange, Inc. (COMEX) opposite smaller orders, and cancelled the larger orders after the smaller orders were executed. The CFTC stated the Defendants placed the larger orders with the intent to cancel them before execution.

The Defendants did not admit nor deny the allegations of the complaint or the findings of fact and conclusions of law contained in the Order.

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Topics: 
Derivatives, Litigation