CFTC Alleges “Spoofing” by Shak One of the most popular players on the “high roller” circuit is not a poker player by trade, but a businessman. Dan Shak has made his money through investment and operation of a hedge fund, but there have been rumors of Shak “bending the law,” so to speak. That “bending” may have occurred recently as an independent agency has charged Shak with attempting to manipulate the precious metals markets with a very controversial technique.
On Friday, Shak was charged by the Commodity Futures Trading Commission, the independent agency that oversees the derivatives markets (futures trading), with using an allegedly illegal technique called “spoofing.” By their designations, the CFTC states that “spoofing” is the placing of orders for future contracts on different materials with the intent to then cancel those orders, manipulating the price of the materials. The most commonly traded futures market might be in agriculture (wheat, soybeans, etc.), but it can also be trades in precious metals like gold, silver, and other financially significant mechanisms.
According to Bloomberg’s Joe Deaux , the CFTC says that Shak engaged in this practice, even though there is a notable case working its way through the court system already. In a criminal case in Chicago, bankers associated with JPMorgan Chase & Co. are accused of several acts, including price manipulation, wire fraud, commodities fraud, and “spoofing” the metals futures market. These charges are similar to what Shak is being accused of with his actions.
“These charges demonstrate once again that the CFTC will vigorously prosecute to the fullest extent of the law, misconduct that has the potential to undermine the integrity of our markets,” Gretchen Lowe, the CFTC’s acting division of enforcement director, is quoted by Deaux. There has been no comments from Shak on any of his social media accounts and the hedge fund he founded, SHK Management, also has not issued any statements.
Shak Has Settled Past Incidences
This isn’t the first time that Shak has had to deal with accusations of malfeasance .
In 2015, he settled a case with the CFTC after he made trades […]