You will recall back on October 28th I talked about 'Silver-Gate', allegations by Commodity Futures Trading Commission (CFTC) Commissioner Bart Chilton that JP Morgan and HSBC have engaged in "fraudulent efforts to persuade and deviously control the price (of silver)."
Intensifying the issue is this development.
A separate lawsuit has now been filed n the Southern District of New York alleging breach of the Racketeering Influenced and Corrupt Organizations (RICO) Act.
Steve Berman, co-counsel of plaintiff law firm Hagens Berman Sobol Shapirof said:
- "The practice of naked short selling has long been a serious issue on Wall Street. What we know about the scope and intent of JP Morgan and HSBC's actions in this short-selling scheme dwarfs any other similar attempt to manipulate a commodities market."
A significant element of this development is that the Plaintiffs are seeking that the court enjoin JP Morgan and HSBC from continuing their alleged conspiracy and manipulation of the silver futures and options contracts market.
Here is the content of a Hagens Berman internal statement on the case:
- JP Morgan Chase & Co. (NYSE: JPM) and HSBC Securities Inc. (NYSE: HBC) face charges of manipulating the market for silver futures and options in violation of federal commodities and racketeering laws, according to a lawsuit filed in the U.S. District Court for the Southern District of New York.
The suit – which alleges violation of the Commodity Exchange Act and the Racketeering Influenced and Corrupt Organizations (RICO) Act – alleges that the two banks colluded to manipulate the market for silver futures starting in the first half of 2008 by amassing huge short positions in silver futures contracts they had no intent to fill, but did so to force silver prices down to their benefit.
According to the lawsuit, JP Morgan and HSBC used a variety of methods to coordinate their manipulation of the market for silver futures contracts, signaling when to flood the COMEX market with short positions, which caused the price of silver futures and options contracts to crash.
In addition, the lawsuit states that both JP Morgan and HSBC still maintain highly concentrated holdings in short positions in silver futures and options, giving both banks the ability to continue manipulating the price of silver.
Plaintiffs’ attorneys have asked the court to certify the case as a class action and enjoin JP Morgan and HSBC from continuing their alleged conspiracy and manipulation of the silver futures and options contracts market. Attorneys also ask the court to award damages and attorneys’ fees to the class.
If you have information you believe is important to the case, please contact Hagens Berman at 206-623-7292 or by e-mail at JPMorgan@hbsslaw.com
It gets better and better with each passing day.
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