Last updated: July 23, 2026 · By White Metal Resources Editorial
Quick answer: Federal enforcement in precious metals runs on two main tracks. The Commodity Futures Trading Commission (CFTC) polices futures markets and retail leveraged sales. The Securities and Exchange Commission (SEC) polices metals-linked securities and mining stock promotions.
The reference case is the September 29, 2020 CFTC order against JPMorgan Chase and its subsidiaries. It required 920.2 million dollars in total relief for spoofing across gold, silver, platinum, and palladium futures. The CFTC called it the largest metals-related sanction in the agency's history.
Other named actions include the 2018 Bank of Nova Scotia order for 800,000 dollars on gold and silver spoofing and the September 2019 Mitsubishi International order for 400,000 dollars on gold and silver spoofing. A 2019 criminal spoofing plea by trader Christian Trunz sits alongside them.
The page catalogs those actions with dollar amounts and dates, so a retail buyer can check the track record of any metals firm or bank before opening an account.
Short on time? The essentials
- The CFTC and the SEC are the two main federal enforcers for precious metals fraud, with the FBI and the Department of Justice adding criminal charges in the bigger cases.
- On September 29, 2020 the CFTC ordered JPMorgan Chase to pay 920.2 million dollars in total relief for spoofing gold, silver, platinum, palladium, and Treasury futures over 2008 to 2016.
- The JPMorgan order broke down into 311.7 million in restitution, 172.0 million in disgorgement, and 436.4 million in civil monetary penalty, per CFTC Release 8260-20.
- Then-Chairman Heath Tarbert stated the CFTC's position on the conduct: "Spoofing is illegal, pure and simple."
- In 2018 the CFTC settled with Bank of Nova Scotia for 800,000 dollars over gold and silver spoofing on CME between 2013 and 2016; the bank self-reported the misconduct.
- On September 30, 2019 the CFTC ordered Mitsubishi International Corporation to pay 400,000 dollars for spoofing gold and silver futures on COMEX by a London-based precious metals trader between April 2016 and January 2018.
- Also in 2019, trader Christian Trunz pleaded guilty in the Eastern District of New York to conspiracy and spoofing across two large banks between 2007 and 2016.
- Retail leveraged metals schemes fall under Commodity Exchange Act Section 2(c)(2)(D); the leading case is the 108 million dollar Hunter Wise judgment covered on a sibling page.
- Report suspected fraud to the CFTC at 866-366-2382 or through the file-a-tip form on cftc.gov; report metals-linked securities fraud to the SEC at 1-800-732-0330 or sec.gov/tcr.
This page is a catalog of named federal enforcement actions in precious metals, with the dollar amounts, dates, and the underlying misconduct. Every figure below traces to a CFTC release, an SEC filing, or a federal court docket. The goal is a working reference a retail buyer can bring to a dealer conversation before opening an account.
Who enforces precious metals rules in the United States
Two federal agencies do the bulk of precious metals enforcement. The Commodity Futures Trading Commission handles fraud in metals futures, retail leveraged sales, and market manipulation. The Securities and Exchange Commission handles fraud tied to metals-linked securities, mining stock offerings, and metals-focused funds.
Criminal cases add a third actor. The Department of Justice and the Federal Bureau of Investigation prosecute spoofing and wire fraud when the facts warrant charges. State attorneys general and the Federal Trade Commission add reach on retail dealer misconduct and deceptive advertising.
The two agency mandates rarely overlap, which is why a track-record search should cover both. A firm can be clean at the CFTC and still carry a live SEC action, or the reverse. Our sibling page on how precious metals markets are policed maps the agency roles in more detail.
The centerpiece: the 920.2 million dollar JPMorgan order
The single largest metals enforcement action to date is the September 29, 2020 CFTC order against JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., and J.P. Morgan Securities LLC. The order settled charges of manipulation, spoofing, false reporting, and a control-failure count.
The CFTC found that from at least 2008 through 2016, traders at the bank placed hundreds of thousands of orders in precious metals and Treasury futures they did not intend to execute. The pattern induced other market participants to trade, and then the deceptive orders were canceled.
The bank was ordered to pay 920.2 million dollars in total relief. That total is composed of 311,737,008 dollars in restitution, 172,034,790 dollars in disgorgement, and a 436,431,811 dollar civil monetary penalty. Source: CFTC Release 8260-20, September 29, 2020.
Then-CFTC Chairman Heath Tarbert framed the agency's view of the conduct directly. He stated: "Spoofing is illegal, pure and simple." The order stood at the time as the largest sanction the CFTC had ever imposed in a manipulation matter and the largest ever tied to spoofing across the metals complex.
Parallel resolutions from the Department of Justice and the SEC brought the total penalties tied to the JPMorgan spoofing conduct above 920 million dollars, though those tracks are separate from the CFTC order itself. Source: CFTC Release 8260-20.
Other bank spoofing cases: Bank of Nova Scotia and Mitsubishi
Two smaller bank orders sit alongside the JPMorgan matter and are useful to know. Both were resolved before the JPMorgan case and both involved spoofing in gold and silver futures on CME Group markets.
On September 28, 2018 the CFTC settled with The Bank of Nova Scotia for 800,000 dollars. The order found that the bank had engaged in spoofing across at least four gold and silver futures contracts on CME between June 2013 and June 2016. The bank self-reported the misconduct and cooperated with the investigation. Source: CFTC Release 7818-18, September 28, 2018.
On September 30, 2019 the CFTC ordered Mitsubishi International Corporation to pay 400,000 dollars. The order found that a London-based precious metals trader placed spoof orders in COMEX gold and silver futures between April 2016 and January 2018. The trader entered orders on one side of the book he did not intend to execute, to induce activity on the other side. Source: CFTC Release 8046-19, September 30, 2019.
Worth knowing: the size gap between JPMorgan and the smaller bank orders reflects the difference in scope, duration, and prior warnings, not a market share metric. The order amounts are penalties for specific conduct, not measures of any bank's exposure to precious metals overall.
Individual trader cases and criminal pleas
Enforcement in this area is not limited to firms. Individual traders have been named, and several have entered criminal pleas alongside the civil settlements. The record on individual accountability matters for a buyer looking at a dealer's leadership history.
On August 20, 2019 trader Christian Trunz pleaded guilty in the United States District Court for the Eastern District of New York to conspiracy to engage in spoofing and to substantive spoofing. The plea covered conduct at two large banks between July 2007 and August 2016. Trunz admitted placing thousands of spoof orders in gold, silver, platinum, and palladium futures. Source: CFTC Release 8014-19, August 20, 2019.
Trunz was one of several traders charged as part of the wider Department of Justice investigation into metals spoofing. The pattern of pleas showed that the enforcement track ran through named individuals, not only against banks as institutions.
A second point matters for retail buyers. Named individuals sometimes resurface in retail sales roles after leaving trading desks. Checking any senior salesperson's registration and enforcement history is a small step that has repeatedly caught prior misconduct.
Retail scheme enforcement: Hunter Wise and its cousins
The bank cases above deal with futures trading. A separate track of enforcement targets retail schemes that pitch physical metals to households through phone and lead-form sales. The reference case there is Commodity Futures Trading Commission v. Hunter Wise Commodities, LLC.
On May 16, 2014 a federal court in the Southern District of Florida entered judgment ordering Hunter Wise and its principals to pay 52.6 million dollars in restitution and 55.4 million dollars in civil penalties, over 108 million dollars total. The court found that more than 3,200 retail customers were defrauded and that over 90 percent of them lost money. Source: CFTC Release 6935-14, May 22, 2014.
Sister actions include the March 19, 2014 CFTC charges against Gold Distributors, Inc. of Hallandale Beach, Florida and its owner Jordan Cain for the same financed retail pattern. The full mechanism is covered on our sibling page on leveraged precious metals schemes, including the 28-day actual-delivery rule under Commodity Exchange Act Section 2(c)(2)(D).
How to check a metals firm’s enforcement record
A short checklist lets any retail buyer verify the enforcement record of a metals firm or salesperson before opening an account. Each step below is a free public search, and each returns a definite yes or no answer.
- Search the CFTC press release archive. Use cftc.gov/PressRoom and search by firm name and by principal names to see if the entity or any leader is named in a past order.
- Check the NFA BASIC database. Go to nfa.futures.org/BASIC and look up the firm and any individual introducing broker or associated person for registration status and disciplinary history.
- Search the SEC EDGAR system. Use sec.gov/edgar/search and query the firm name to find any litigation releases, orders, or administrative proceedings on file.
- Check state registration. Search the North American Securities Administrators Association member list at nasaa.org for the buyer's home state regulator, then look up the firm on that state's site.
- Search federal court dockets. Use pacer.uscourts.gov to search for any civil or criminal case naming the firm or its principals, then read the underlying complaint and any judgment.
If any of the five checks returns a hit, read the underlying document rather than the summary. If a hit is confirmed and remains unresolved, the safest response is to end the sales conversation and consult a licensed advisor.
| Case | Date of order | Conduct | Total ordered | Source |
|---|---|---|---|---|
| JPMorgan Chase and subsidiaries | September 29, 2020 | Spoofing in gold, silver, platinum, palladium, and Treasury futures, 2008 to 2016 | 920.2 million dollars | CFTC Release 8260-20 |
| Bank of Nova Scotia | September 28, 2018 | Spoofing in gold and silver futures on CME, June 2013 to June 2016 | 800,000 dollars | CFTC Release 7818-18 |
| Mitsubishi International Corporation | September 30, 2019 | Spoofing in COMEX gold and silver futures by a London-based trader, April 2016 to January 2018 | 400,000 dollars | CFTC Release 8046-19 |
| Christian Trunz (individual trader) | August 20, 2019 | Guilty plea to conspiracy and spoofing in gold, silver, platinum, palladium futures at two banks, 2007 to 2016 | Criminal plea, E.D.N.Y. 19-CR-375 | CFTC Release 8014-19 |
| Hunter Wise Commodities, LLC | May 16, 2014 | Financed retail metals scheme, more than 3,200 retail customers defrauded, over 90 percent lost money | Over 108 million dollars | CFTC Release 6935-14 |
| Gold Distributors, Inc. and Jordan Cain | March 19, 2014 | Financed retail sales of gold and silver with no actual delivery to customers | See enforcement docket | CFTC Release 6845-14 |
Sources: CFTC press releases as cited; checked June 2026.
The SEC side: metals-linked securities and mining stock fraud
The SEC track is smaller in dollar terms in the metals area but active enough to warrant checking. Its cases have covered mining stock promotion, unregistered offerings tied to gold or silver holdings, and investment scheme frauds that used metals as a pitch line.
The agency also publishes a public investor alert warning that gold and precious metals fraud tends to spike during periods of market stress. The alert flags unregistered offerings, unlicensed sellers, and promises of high returns with little risk as the recurring red flags. Source: SEC Investor Alert on gold and other precious metals fraud.
The calculator below is not an SEC or CFTC tool, but it lets a saver estimate how a stated annual fee rate erodes an account over time. Use it before signing any storage or dealer contract that quotes a recurring percentage.
Precious metals IRA fee-drag calculator
Precious metals IRAs charge mostly flat dollar fees (setup, annual custodian, storage). Flat fees take a much bigger bite out of a small account than a large one. Enter your numbers to see the drag.
Estimate only. Fee amounts vary by provider and are often not published; enter figures you confirm in writing. This tool ignores metal price changes and the dealer spread, which also affect returns. Not financial advice.
Picture a saver who is offered a metals account with a 2 percent annual all-in fee. Assume a starting balance of 100,000 dollars and no additional contributions. The fee alone, before any market movement, extracts this much over ten years:
- Year one fee at 2 percent of 100,000 dollars equals 2,000 dollars.
- Applied to a hypothetical flat account, ten years of 2 percent fees compound to roughly 18,300 dollars gone from the balance.
- Combined ten-year drag from fees alone, on a 100,000 dollar starting balance, is about 18,300 dollars, or 18 percent of the original.
- The dollar drag is the same whether the metal price rises or falls, because storage and administration fees are typically charged on the account, not on the return.
The figures above are illustrative and use flat assumptions. They are not a quote from any firm and not a market prediction.
They show why fee disclosure has been a repeated theme in retail metals enforcement. This is an illustration, not financial advice; consult a licensed advisor for your situation. Fee drag is not the only risk on retirement money, and any account can be exposed to metal price volatility on top of it.
Why enforcement action is not a market prediction
A long track record of enforcement in precious metals tells a retail buyer two things. First, federal agencies have identified specific patterns of misconduct and have punished them. Second, punishment is backward-looking and never a prediction of future prices, future firm behavior, or future enforcement.
Reading the orders above is a way to check whether a specific firm or salesperson is a known bad actor. It is not a way to time gold, silver, platinum, or palladium prices. Any dealer who cites an enforcement case as evidence for a price direction is misusing the record.
A balanced view keeps the two threads separate. Enforcement history informs the choice of counterparty. Portfolio decisions belong to the saver, in consultation with a licensed financial or tax advisor who understands the full retirement plan.
Enforcement questions, answered
Which agency enforces spoofing in gold and silver futures?
The Commodity Futures Trading Commission. Spoofing in listed futures is a violation of the Commodity Exchange Act, and the CFTC has brought most of the major precious metals spoofing cases, including the September 29, 2020 order against JPMorgan Chase for 920.2 million dollars.
What did the September 2020 CFTC order against JPMorgan cover?
It settled charges that JPMorgan Chase and its subsidiaries engaged in manipulation and spoofing across precious metals and Treasury futures from at least 2008 through 2016. Total relief was 920.2 million dollars, composed of 311.7 million in restitution, 172.0 million in disgorgement, and 436.4 million in civil penalty, per CFTC Release 8260-20.
Was JPMorgan the only bank sanctioned for metals spoofing?
No. The Bank of Nova Scotia was ordered to pay 800,000 dollars in 2018 for gold and silver spoofing on CME between 2013 and 2016. Mitsubishi International Corporation was ordered to pay 400,000 dollars in September 2019 for gold and silver spoofing on COMEX between April 2016 and January 2018.
Have individual traders been charged, not just banks?
Yes. Trader Christian Trunz pleaded guilty in August 2019 in the Eastern District of New York to conspiracy and spoofing in gold, silver, platinum, and palladium futures across two banks between 2007 and 2016. Other named traders have been charged as part of the broader Department of Justice metals investigation.
What is the leading retail precious metals fraud case?
Commodity Futures Trading Commission v. Hunter Wise Commodities, LLC, resolved in the Southern District of Florida in May 2014 with a judgment above 108 million dollars. The court found that more than 3,200 retail customers were defrauded and over 90 percent lost money. The full mechanism sits on our leveraged schemes page.
How do I look up whether a metals dealer has an enforcement record?
Search cftc.gov/PressRoom by firm and principal names, check the NFA BASIC database at nfa.futures.org/BASIC, run the firm through SEC EDGAR at sec.gov/edgar/search, search state regulator sites through nasaa.org, and search federal dockets on pacer.uscourts.gov. Read the underlying document, not the summary.
Where do I report suspected metals fraud?
Report suspected futures or leveraged metals fraud to the CFTC Division of Enforcement at 866-366-2382 or through the file-a-tip form on cftc.gov. Report suspected securities fraud tied to metals, including mining stock schemes, to the SEC at 1-800-732-0330 or through the tip form at sec.gov/tcr.
Does an enforcement action mean gold or silver prices will move?
No. Enforcement orders are penalties for past conduct and do not predict future prices. Any salesperson who cites an enforcement case as evidence for a price direction is misusing the record. Portfolio decisions belong to the saver, in consultation with a licensed advisor who understands the full retirement plan.
Sources
- Commodity Futures Trading Commission, Release 8260-20: JPMorgan Chase & Co. and subsidiaries ordered to pay 920.2 million dollars for spoofing and manipulation, September 29, 2020. Checked June 2026.
- Commodity Futures Trading Commission, Release 7818-18: The Bank of Nova Scotia ordered to pay 800,000 dollars for gold and silver spoofing, September 28, 2018. Checked June 2026.
- Commodity Futures Trading Commission, Release 8046-19: Mitsubishi International Corporation ordered to pay 400,000 dollars for gold and silver spoofing, September 30, 2019. Checked June 2026.
- Commodity Futures Trading Commission, Release 8014-19: Trader Christian Trunz pleads guilty to spoofing in precious metals futures, August 20, 2019. Checked June 2026.
- Commodity Futures Trading Commission, Release 6935-14: Federal court orders Hunter Wise Commodities and its owners to pay over 108 million dollars in restitution and penalties, May 22, 2014. Checked June 2026.
- Commodity Futures Trading Commission, Release 6845-14: Charges against Gold Distributors, Inc. and Jordan Cain, March 19, 2014. Checked June 2026.
- United States Securities and Exchange Commission, Investor Alert: Gold and other precious metals fraud. Checked June 2026.
- National Futures Association, BASIC database for registration and disciplinary history. Checked June 2026.
- Cornell Legal Information Institute, 7 U.S.C. Section 2 (Commodity Exchange Act, including Section 2(c)(2)(D) on retail commodity transactions). Checked June 2026.
