Aleksandr Milrud, who earlier this year was charged by the Securities and Exchange Commission with engaging in disruptive trading activity known as “spoofing” or “layering” in connection with high-speed purchases and sales of various exchange-traded securities from January 2013 through January 2015, agreed to plead guilty in a related criminal matter brought by the US Department of Justice. According to the SEC, Mr. Milrud—a Canadian citizen who resides in Ontario, Canada, and has a residence in Aventura, Florida—used other traders—primarily in China and Korea—to place multiple “non-bona fide orders” for stocks to induce other traders to trade on one side of the market at “artificially inflated or depressed prices” and then to cancel the orders. Mr. Milrud and the other traders engaged in this strategy to effectuate orders to purchase or sell the relevant security on the other side of the market at favorable prices, charged the SEC. In connection with his criminal action, Mr. Milrud will plead guilty to one count of conspiring to commit securities fraud, and face imprisonment of up to five years, and a fine equal to the greater of US $250,000 or twice the gross amount of any profits he made from his trading. Mr. Milrud’s SEC action remains pending. (Click here for further background information in the article “Canadian Citizen Charged by SEC With Unlawful Layering Involving Traders in China and Korea” in the January 18, 2015 edition of Bridging the Week.)