Andrew Maguire (whistleblower)
Andrew Maguire | |
|---|---|
| Occupation(s) | Commodities trader, whistleblower |
| Known for | Whistleblowing on alleged manipulation of global gold and silver markets |
Andrew Maguire is a British trader specializing in commodities who gained attention as a whistleblower by providing U.S. regulatory authorities with evidence suggesting manipulation within the global gold and silver markets. Despite his claims, no formal regulatory or legal proceedings have been initiated.
Background
On 29 March 2010, Maguire appeared in an interview alongside Gold Anti-Trust Action Committee (GATA) board member Adrian Douglas. In April 2010, he publicly accused JPMorgan Chase and HSBC of engaging in manipulative practices affecting gold and silver markets, which subsequently triggered multiple lawsuits, including a class action lawsuit. Contrary to some media assertions, Maguire was never employed as a trader at Goldman Sachs, although he had a brief tenure at J. Aron & Co., a firm that Goldman Sachs acquired in 1981.
Market manipulation
During an interview with CBC in April 2013, Maguire explained that traders, purportedly from bullion banks such as JPMorgan and HSBC, concentrated their trading activities on the COMEX following the closure of other significant markets. They employed anonymous algorithm-driven trading platforms to execute rapid, large-scale silver transactions—sometimes reaching up to 45,000 contracts—that triggered steep price declines followed by swift recoveries, resulting in estimated profits of $3.6 billion.
Maguire pointed out that while precious metals markets tend to move in tandem, silver’s relatively smaller market size makes manipulative actions more detectable. After JPMorgan’s acquisition of Bear Stearns and its associated short silver positions, these manipulative tactics intensified. Maguire collaborated directly with the Commodity Futures Trading Commission (CFTC), particularly commissioner Bart Chilton and senior investigator Eliud Ramirez, providing comprehensive details through phone conversations and emails supplemented with screenshots.
He accurately forecasted a manipulative event in the silver market two days prior to its occurrence in February 2010, outlining its operational mechanics beforehand. Throughout this incident, Maguire sent live email updates to the CFTC emphasizing critical information that enforcement personnel appeared unaware of.
Bill Murphy, chairman of GATA, informed the CFTC that JPMorgan signals market movements to traders who capitalize on short positions in precious metals during routine occurrences such as option expirations, payroll reports, contract rollovers, as well as unexpected events.
Ongoing criminal investigation
Both the Antitrust Division of the United States Department of Justice and the CFTC are conducting civil and criminal inquiries into these allegations. The CFTC has interviewed 32 individuals and examined approximately 40,000 documents; however, as of May 2011, no enforcement measures have been taken. On 24 February 2011, silver prices experienced a sudden $1.50 per ounce drop before rebounding. Richard Guthrie, a London-based trader, questioned how such an event affects investors while potentially generating significant profits for a limited group. Commissioner Chilton maintains that violations of law have occurred and supports pursuing prosecutions, although the five-member commission has yet to take formal action.
See also
- Gold as an investment
- Regulatory capture
- Silver as an investment
- Inside Job – Academy Award-winning documentary exploring systemic corruption within the U.S. financial sector
- List of whistleblowers