Pending Criminal Division Cases - 1:18-cr-00048-1

United States v. Edward Bases and John Pacilio
Court Docket No.: 1:18-cr-00048 (N.D. Illinois)

Court Assigned: This case is assigned to the Honorable John Z. Lee, U.S. District Court for the Northern District of Illinois, Everett McKinley Dirksen United States Courthouse 219 South Dearborn Street Chicago, IL 60604.


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Criminal Charges: On July 18, 2018, Edward Bases of New Canaan, Connecticut, and John Pacilio, of Southport, Connecticut, were each charged by indictment with one count of conspiracy to commit wire fraud affecting a financial institution and commodities fraud and one count of commodities fraud.  Pacilio is also charged with five counts of spoofing.    

The indictment alleges that Bases and Pacilio, who were employed as precious metals traders at banks in New York, New York, engaged in multi-year schemes to mislead the market for precious metals futures traded on the Commodity Exchange Inc (COMEX), which was an exchange run by the Chicago Mercantile Exchange Group.  The defendants and their co-conspirators are alleged to have defrauded market participants by placing orders that they did not intend to execute in order to create the appearance of false supply and demand and to induce other market participants to trade at prices, quantities and times that they otherwise would not have traded.

Bases and Pacilio were previously charged in a criminal complaint with commodities fraud in connection with an alleged scheme to engage in both solo and coordinated spoofing on the COMEX when they were employed as precious metals traders at a leading global financial institution. That complaint was unsealed by the court on January 29, 2018.

For information about the charges in this case, please see below:
Indictment
Complaint
Press Release – July 18, 2018
Press Release – January 29, 2018

The information on this website will be updated as new developments arise in the case. If you have any questions, please call the Victim Assistance Line toll-free at (888) 549-3945 or email us at victimassistance.fraud@usdoj.gov.


Presumption of Innocence: It is important to keep in mind that defendants are presumed innocent until proven guilty and that presumption requires both the court and our office to take certain steps to ensure that justice is served.

Crime Victims’ Rights Act and Right to Retain Counsel: The Crime Victims’ Rights Act (18 U.S.C. § 3771) applies only to victims of the counts charged in federal court, and thus individuals may not be able to exercise all of these rights if the crime of which the individual is a victim was not charged. Section 377I(c)(2) of this Act requires that we advise you that you have the right to retain counsel. Although the statute specifically sets forth your right to seek advice of an attorney with regard to your rights under the statute, there is no requirement that you retain counsel. The Government may not recommend any specific counsel, nor can the Government (or the Court) pay for counsel to represent you. Government attorneys represent the United States.

If you elect to obtain counsel to represent your interests, please have your attorney notify this office in writing at: U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, 4th Floor, Washington, DC 20530, Attention: Victim Witness Unit; fax: (202) 514-3708; or email: victimassistance.fraud@usdoj.gov (link sends e-mail). If you elect not to retain counsel to represent your interests, you do not need to do anything.

Plea Agreements: Please be aware that many criminal cases are resolved by plea agreement between the Department of Justice and the defendant. You should also know that it is not unusual for a defendant to seek to negotiate a plea agreement shortly before trial is scheduled to begin. Plea agreements can be made at any time and as late as the morning of trial, leaving little or no opportunity to provide notice to you of the date and time of the plea hearing. If the court schedules a plea hearing in this case, we will use our best efforts to notify you of available information as soon as practicable. If you want to inform the prosecutor of your views regarding potential plea agreements, or any other aspect of the case, please call the Victim Assistance Line toll-free at (888) 549-3945 or email us at victimassistance.fraud@usdoj.gov (link sends e-mail), and we will put you in touch with the prosecutor.

 

Updated November 9, 2018

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