Merrill Lynch Commodities to Pay $25 Million To Resolve Government Investigation -- U.S. DOJ
June 25 2019 - 5:49PM
Dow Jones News
By Stephen Nakrosis
The U.S. Department of Justice on Tuesday said Merrill Lynch
Commodities Inc. will pay $25 million to resolve a government
investigation looking into a "multiyear scheme by MLCI precious
metals traders to mislead the market for precious metals futures
contracts traded on the Commodity Exchange Inc."
The Justice Department said between 2008 and 2014 some Merrill
Lynch precious metals traders placed fraudulent orders to
"manipulate the market by creating the false impression of
increased supply or demand." The traders then sold futures
contracts to other market participants "at quantities, prices and
times that they otherwise likely would not have done so," the
department said.
Merrill Lynch Commodities entered a nonprosecution agreement
and, along with parent company Bank of America Corp. (BAC), will
cooperate with the government's ongoing investigation, the
department said. The companies will also enhance existing
compliance programs and internal controls, the department said.
The Commodity Futures Trading Commission on Tuesday announced a
separate settlement with Merrill Lynch Commodities that will see
the company pay a civil monetary penalty of $11.5 million, and
carry out other remedial and cooperation obligations in connection
with any related CFTC investigation.
A spokesman for Merrill Lynch Commodities said, "We're
disappointed by the conduct of the former Merrill Lynch Commodities
employees named in this matter, and have cooperated with the
investigations."
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
June 25, 2019 17:34 ET (21:34 GMT)
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