Ex-Merrill Lynch Trader Wants Spoofing Scheme Charge Axed

Law360 (March 26, 2020, 9:19 PM EDT) -- A former Merrill Lynch trader argued Wednesday that he shouldn't have to face federal prosecutors' charge that he participated in a years-long scheme to spoof the precious metals market, saying the charge is unconstitutionally vague and unauthorized by law.

The Commodity Exchange Act's anti-spoofing provision limits prosecutors to base spoofing charges on particular trading, practice or conduct and "does not permit the government to prosecute a substantive count of spoofing as a scheme," ex-trader John Pacilio argued in Illinois federal court in urging U.S. District Judge John Lee to toss count 20 from the government's case against him. He also argued...

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