September 21, 2022

CFTC accuses poker player Dan Shak of impersonation in gold and silver markets

High-stakes poker player Dan Shak is once again in the crosshairs of the Commodity Futures Trading Commission.

On August 5, the Commodity Futures Trading Commission filed a civil lawsuit in the U.S. District Court for the District of Nevada against Shak, charging him with “impersonation and participation in a manipulative and deceptive trading scheme”. terms of gold and silver”.

In litigation, the CFTC seeks civil monetary penalties, reimbursement, trade bans and a permanent injunction against future violations of federal commodity laws.

It’s not the first time that Shak has had problems with the CFTC. In 2015, Shak was ordered to pay $100,000 for “attempting to manipulate the price of crude oil futures on the New York Mercantile Exchange and violating speculative position limits for two days in 2008.”

In 2013, he was fined $400,000 for another violation.

The latest complaint against Shak alleges that from February 2015 to March 2018, Shak “repeatedly engaged in manipulative or deceptive acts and practices by usurping – bidding or bidding with the intent to rescind the bid or offer before execution – while placing orders and trading gold. and silver futures on the Commodity Exchange, Inc.”

The government said that, “on hundreds of occasions,” Shak entered large gold or silver futures orders that he intended to cancel before execution, while passing orders on the other side of the gold or silver futures market.

“By placing the false orders, Shak intentionally or recklessly sent false signals of increased supply or demand that were designed to induce market participants to execute orders on the opposite side of the market, which he wanted actually execute,” the government said. “Shak’s fake orders allowed him to fill orders on the other side of the market sooner, at a better price, and/or in larger quantities than they would otherwise have been filled.”

Shak has had a productive year at the poker tables. He recently recorded seven in-the-money finishes at the 2022 World Series of Pokerincluding a run deep into the $50,000s poker players championship and a cash in the main event. He has over $12.7 million in career tournament earnings.