British commodities trader Andrew Maguire went public in April 2010 with allegations that JPMorgan Chase and, to a lesser extent, HSBC manipulated international gold and silver prices through concentrated futures trading and anonymous algorithmic orders. Maguire told the U.S. Commodity Futures Trading Commission (CFTC) that traders could exploit periods when major markets were closed, rapidly sell large volumes of electronic silver contracts to trigger price declines, then buy back at lower prices. He estimated one alleged episode involving 45,000 contracts generated approximately $3.6 billion in profit, based on $80,000 per contract. These claims were reported by Maguire and supporters including Gold Anti-Trust Action Committee chairman Bill Murphy, not established by a court or regulator.
Maguire contacted CFTC commissioner Bart Chilton and senior enforcement investigator Eliud Ramirez, supplying interviews, emails, and screenshots. On February 3, 2010, he allegedly predicted a specific silver-market event two days before it occurred and sent real-time commentary during the price movement. The CFTC reportedly interviewed 32 people and reviewed 40,000 documents, while the U.S. Department of Justice Antitrust Division and CFTC pursued civil and criminal inquiries. As of May 2011, however, no legal or regulatory action had resulted; the source records allegations and investigations rather than a proven manipulation scheme.
