The Justice Division is asking a choose to place the brakes on a civil lawsuit towards J. P. Morgan Chase, citing an ongoing probe right into a “associated legal case” that includes alleged manipulation of valuable metals markets.


The division needs a six-month postponement within the proceedings of the civil lawsuit, which was filed in 2015 by hedge fund supervisor Daniel Shak and two commodity merchants. The federal government additionally says it may ask for an extended delay within the case, based on a courtroom submitting on Monday.


The transfer comes days after Shak’s lawyer, David Kovel, sought permission to reopen questioning of two former J. P. Morgan merchants and the financial institution’s present world head of base and valuable metals buying and selling.


Kovel, in making the request with the Manhattan choose within the civil case, cited final month’s responsible plea by a type of former merchants, John Edmonds, in federal courtroom in Connecticut.


Edmonds admitted making bogus bids on valuable metals contracts whereas working on the financial institution from 2009 to 2015.


Neither J. P. Morgan Chase nor Kovel’s purchasers have opposed the Justice Division’s request, and Choose Paul Engelmayer has but to rule on it.


In arguing for a delay, the Justice Division mentioned Shak’s lawsuit is “associated” to Edmonds’ legal case and that Edmonds has “pleaded responsible and acknowledged his personal participation in such conduct, in addition to that of different merchants.”


“Edmonds awaits sentencing, however the broader investigation is ongoing,” the Justice Division mentioned. The U.S. needs to delay the civil case “to guard the integrity of its ongoing legal investigation,” it mentioned.


J. P. Morgan didn’t reply to a request for remark by CNBC. Kovel declined to remark.


In his responsible plea, the 36-year-old Edmonds mentioned he had realized to make bogus commerce orders from senior merchants on the financial institution and that he used the technique lots of of occasions with the information and consent of his instant supervisors. He admitted to working with “unnamed co-conspirators” at J. P. Morgan, based on the Justice Division.


Kovel needs to query Edmonds once more in addition to Michael Nowak, the financial institution’s world head of base and valuable metallic buying and selling, and former J. P. Morgan Chase Managing Director Robert Gottlieb. The three had beforehand answered questions below oath within the civil case.


Kovel mentioned in courtroom filings that Nowak was the instant supervisor of Edmonds, whereas Gottlieb was Edmonds’ mentor.


In his prior deposition, Edmonds mentioned that Gottlieb sat solely a “couple toes” away from him for about 5 years, and that he was “any individual [he] regarded as much as within the enterprise,” who helped information and prepare him.


Nowak is described by Edmonds as his direct supervisor, with whom he would generally focus on buying and selling methods. Nowak was additionally the individual liable for overseeing the efficiency and threat of Edmonds’ portfolio, based on the deposition.


Edmonds additionally acknowledged in his prior deposition that he would enter valuable metals trades for each Nowak and Gottlieb, amongst others.


The civil lawsuit claims Shak and his fellow plaintiffs misplaced tens of thousands and thousands of dollars because of actions by J. P. Morgan’s merchants.




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