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October 16, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Local pair indicted on metals trading fraud

Two Fairfield County residents were indicted for their alleged roles in the fraudulent and deceptive trading of metals futures contracts.

Edward Bases of New Canaan and John Pacilio of Southport were each charged with one count of conspiracy to commit wire fraud affecting a financial institution. Both were also charged with one count of commodities fraud each, while Pacilio also faced charges of five counts of spoofing.

The indictment alleges that Bases and Pacilio, who worked as precious metals traders at New York City-based banks, engaged in multiyear schemes to mislead the market for precious metals futures traded on the Commodity Exchange, an exchange run by the Chicago Mercantile Exchange Group. The pair were allegedly part of a larger circle that conspired to defraud market participants by placing orders that they did not intend to execute, thus creating the appearance of false supply and demand and inducing others to trade when they otherwise would not have participated.