By MICHAEL GRAY
JPMorgan Chase and HSBC have been named in a federal lawsuit filed in Manhattan for allegedly conspiring “to intentionally and unlawfully suppress and manipulate the price of Comex silver futures.”
The suit filed yesterday by Brian Beatty a Connecticut silver trader, who is represented by Labaton, Sucharow, states that JPM has “reaped hundreds of millions if nit billions in profits from their unlawful and manipulative suppression of the prices of Comex silver futures and options contacts.”
“We are pleased to bring this suit against JPMorgan and HSBC. The potential actions taken by these banks to unlawfully manipulate the price of COMEX silver futures is one more example of how financial institutions continue to commit fraud for their financial benefit,” said Kellie Lerner a lawyer with Labaton.
The filing comes a day after a federal regulator expressed mounting concerns over the “fraudulent efforts to persuade and deviously control,” the price of silver, said Bart Chilton, Commodities Future Trading Commission member. Chilton’s other silver manipulation comments are included in the filing.
“The filing of the lawsuit is a major milestone in stopping the fraud that has been occurring in these markets and punishing those bullion banks who are responsible,” said Adrian Douglas of the Gold Antitrust Action committee.
Last May Gray’s Economy reported exclusively that federal regulators were looking into civil charges with JPMorgan Chase for fraudulent price manipulation.
JPMorgan and HSBC declined to comment.
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