Former JPMorgan Gold Traders Sentenced to Prison for Fraud and Market Manipulation

The former head of JPMorgan Chase & Co.'s precious-metals desk and his top trader have been sentenced to prison for spoofing, fraud, and attempted market manipulation. Michael Nowak, the former head of gold and silver trading, received a term of one year and one day, while trader Gregg Smith was given two years. The judge described Smith as "the most prolific spoofer that the government has prosecuted to date." The convictions are part of a crackdown on illegal spoofing, where traders place bogus orders to manipulate prices, targeting some of Wall Street's biggest banks. JPMorgan agreed to pay $920 million to settle allegations against it.