CHICAGO—A jury on Friday convicted two former Deutsche Bank DB -1.36% employees accused of manipulating precious-metals prices, boosting prosecutors’ efforts to punish traders for conduct that has cost banks millions of dollars in civil and criminal fines.
The verdict represents prosecutors’ second win in trials over conduct known as spoofing, a rapid-fire manipulation tactic that involves sophisticated detective work to expose.
Companies including Deutsche Bank and Bank of America have collectively paid hundreds of millions of dollars in fines over spoofing claims. With Friday’s outcome, three traders have now been convicted of spoofing-related crimes. Another trader was acquitted and another trial ended in a hung jury.
The jury convicted James Vorley, a U.K. citizen, of three of eight counts of wire fraud. Cedric Chanu, a French citizen, was convicted of seven of 10 counts of wire fraud. Both men were acquitted of one count of conspiracy.
The verdict came after three days of deliberation and seven days of testimony, including trading charts that allegedly showed what the traders were accused of: sending a sequence of rapid-fire orders, all quickly canceled, which distorted supply and demand and resulted in a price move engineered by the spoofer.
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