Three Class Actions Lawsuits filed against Merrill Lynch for Alleged Deceptive Trading Practices in Commodities

According to an article today in Financial Advisor IQ, multiple plaintiff lawyers filed at least three class action lawsuits after federal prosecutors secured a June 25 deal with Merrill Lynch Commodities, to pay $25 million to resolve their investigation into alleged deceptive trading practices.

Further, the Commodity Futures Trading Commission announced on the same day a separate settlement with the Merrill Lynch Commodities unit of Bank of America, requiring it to “pay an $11.5 million civil fine, cooperate with any related investigations, and remediate practices,” according to the article.

According to Financial Advisor IQ, which sites the settlement from the U.S. Department of Justice, two former Merrill Lynch commodities traders allegedly engaged in a multi-year scheme to mislead the market for precious metals futures contracts traded on the Commodity Exchange Inc. (COMEX).

Manipulating the market by creating the false impression of increased supply or demand, in order to induce other market participants to buy and to sell futures contracts, is known as “spoofing.”

The two traders, who have indictments pending against them for, allegedly placed fraudulent orders for precious metals futures contracts, which they intended to halt before execution, according to reports.

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If you are concerned about your investments with Merrill Lynch Commodities, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.

This information is all publicly available and provided to you by The White Law Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.  For more information on the firm and its representation of investors, visit https://www.whitesecuritieslaw.com.

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