Spoofing-Case Stumbles by Prosecutors May Not Save Ex-UBS Trader
- Testimony begins April 16 in Andre Flotron’s conspiracy case
- Flotron says his trading strategies were legitimate and legal
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U.S. prosecutors stumbled in bringing a “spoofing” case against a former UBS Group AG precious metals trader, but in the end it might not matter.
The government is prosecuting Andre Flotron in Connecticut, where the Swiss trader once worked, and not in Chicago, home to commodities markets and trading firms. The judge threw out six of the seven charges, ruling they were brought in the wrong venue and leaving just a conspiracy count. He also barred prosecutors from moving the case to Chicago, where the trades were executed, and blocked them from showing that Flotron engaged in front-running, another form of illegal trading.