After two years of disagreement over suspected spoofing practices, Dan Shak, a semi-professional poker player and hedge fund manager, reached a settlement with the Commodities Futures Trading Commission (CFTC). Shak was still sure he could win the case, but he was more concerned with getting it done quickly.
The Commodities Future Trading Commission (CFTC) charged Shak with trying to use deception to influence the price of gold and silver. Orders are placed in the market and then, just before execution, they are withdrawn, a tactic known as spoofing. According to the allegations, Shak placed many orders with the purpose of canceling them between February 2015 and March 2018.
Shak’s deal with the CFTC involves a number of sanctions, including a substantial $750,000 penalty and prohibitions on trading commodities interests. Shak insists he is innocent and that he will win the case in court, even though he accepted the conditions of the settlement. In order to save a lot of money and time, he decided without pursuing the case further.
Shak highlighted his 45-year stint as a well-respected member of the market in a statement given to PokerNews. He made it clear that the accusations only covered a tiny portion of his long trading career and decided to settle the dispute in order to take advantage of fresh chances and save needless court costs.