Legal

Ex-JPMorgan Gold Traders Get Prison for ‘Prolific Spoofing’

Michael Nowak and Gregg Smith were found guilty last year
Smith’s sentence is stiffest yet in recent spoofing crackdown

Gregg Smith
Photographer: Cheney Orr/Bloomberg

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By Steve Stroth and Joe Deaux

August 22, 2023 at 4:00 PM UTC

Updated on

August 22, 2023 at 8:04 PM UTC

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The former head of JPMorgan Chase & Co.’s precious-metals desk and his top trader were sentenced to prison for spoofing, fraud and attempted market manipulation.

Michael Nowak, who ran gold and silver trading at the bank, and trader Gregg Smith were sentenced Tuesday in Chicago by US District Judge Edmond Chang. Nowak received a term of one year and one day while Smith was given two years, the stiffest sentence yet in a recent government crackdown on questionable trading practices.