The CFTC has filed and settled charges against Kunal Bansal and Vinit Agarwal and Hong Kong and Dubai based firms they own, Aralia Securities, Ltd. and Vintage Bullion DMCC.
The US regulator charged the two defendants and their entities for engaging in wash sales and non-competitive transactions. The charges require them to jointly and severally pay a $100,000 civil monetary penalty.
In addition, the charged individuals were ordered to cease and desist from further CFTC regulations.
According to the financial markets watchdog, Bansal and Agarwal engaged in the fraudulent activities for accounts held by Aralia and Vintage. Around 14 April 2020, Bansal led Agarwal to enter orders for Vintage to sell 250 gold futures contracts traded on COMEX at a specific time. Agarwal entered those orders and Bansal entered off-setting orders to purchase gold futures in the same quantities and at the same prices.
In the course of their activities, there was an instance where Agarwal’s offer did not march with Bansal’s bid. To better match their trades, Agarwal lowered his offer. This resulted in a total of 13 wash trades entered by Aralia and Vintage consisting of 189 gold futures contracts.
The investigation was conducted in parallel with CME Group. The company issued a Notice of Disciplinary Action on 16 December. Bansal agreed to pay a fine of $25,000 and serve a 10-day suspension. Agarwal’s fine was $10,000 and he received a 10-day suspension.
Forex firm Denari Capital and owner were recently ordered to pay $4 million in Pool Fraud case brought by CFTC.
