British commodities trader Andrew Maguire alleged in 2010 that JPMorgan Chase and, to a lesser extent, HSBC used concentrated algorithmic trading to manipulate international gold and silver prices. He contacted CFTC commissioner Bart Chilton and senior investigator Eliud Ramirez, describing alleged trading patterns in interviews and emails. On February 3, 2010, Maguire reportedly predicted a specific silver-market selloff two days in advance and sent real-time messages during the event, including claims that a seller later reversed positions after prices fell. He estimated one episode involved 45,000 contracts and a possible $3.6 billion profit, though these figures and the alleged conduct were not established by a court or regulator.
The allegations became public in April 2010 and prompted lawsuits, including a class action. The CFTC and the Justice Department’s Antitrust Division investigated, with the CFTC reportedly interviewing 32 people and reviewing 40,000 documents by May 2011. Chilton said he believed legal violations had occurred, but no regulatory or criminal action resulted from Maguire’s accusations according to the source. Maguire was also incorrectly described in some reports as a former Goldman Sachs trader; he briefly worked for J. Aron & Co., acquired by Goldman Sachs in 1981.
