This time, the lawsuit is backed by someone it calls “the Informant,” who is described as a 40-year industry veteran and former Goldman employee.
The Informant is key to the lawsuit. His claims – are its backbone.
The anonymous Informant told the prosecution, lead by a man named Eric Nalven (a trader who lost money because of the alleged manipulation), that JPMorgan traders told him first hand that they manipulated the silver market.
From the lawsuit, brought to our attention by Zerohedge:
The JPMorgan traders would brag to the Informant about how much money they were making as a result of such manipulation.
Both this lawsuit, and the past lawsuit, claim JPMorgan and HSBC, two firms which they say controlled 96% of all precious metals derivative contracts, conspired to depress the price of silver around “key” dates, like when unemployment data was released.
It’s not happening now, both also say, because the Informant went public with his accusations in March, and the CFTC began investigating his claims.
For the Informant’s claims, read the embedded PDF of the lawsuit. His identity remains a mystery to us, but it must be out there. He emailed the CFTC on a number of occasions.