Florida miner’s lawsuit accuses JPMorgan of manipulating silver prices By Reuters
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LONDON, (Reuters) – A Florida-based silver miner has brought a damages case against JPMorgan. He claims that JPMorgan manipulated silver prices to make them so low that his mine had to be shut down.
According to the complaint filed Tuesday at the U.S. District Court, Southern District of Florida Hidalgo Mining Corp claimed it raised $10.35million from investors in order to finance a Mexican silver mine that was in production since 2012. It was shut down in 2014.
The average silver price was $31/ounce in 2012, and $19/ounce in 2014.
JPMorgan did not comment.
Reuters has seen Hidalgo’s claims. They use as evidence information from a U.S. regulators investigation that found JPMorgan employees between 2008-2016 sent false buy and sell orders to metals and Treasuries market prices.
This technique is known as “spoofing” and traders say it’s a trading strategy that works in a short-term rather than to suppress long-term prices.
JPMorgan agreed last year to pay $920 million in settlements.
Last week, the bank paid $15.7million to settle a lawsuit brought by investors who claimed that manipulation caused losses.
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