High-frequency trader indicted, accused of illegally using millisecond trades to make $1.5M

Published January 08, 2015

Chicago prosecutors say a high-frequency trader in New Jersey has been indicted for allegedly manipulating commodities prices by using software that executes trades within milliseconds.

The U.S. attorney's office in Chicago announced the indictment Thursday. It alleges that 52-year-old Michael Coscia, of Rumson, New Jersey, made around $1.5 million by illegally placing orders through the Chicago-based CME Group and European futures markets in 2011.

Prosecutors say the indictment is the first of its kind under major changes to commodities law in 2010.

Coscia is facing six counts of commodities fraud and six of spoofing. A conviction on one fraud count alone carries a maximum 25-year prison sentence.

Coscia's attorney, Richard Reibman, said in a phone interview Thursday that he's "discussing the matter" with prosecutors. He declined further comment.

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