Poker Pro Dan Shak Settles Market Manipulation Charges for $750,000
Professional poker player Dan Shak recently resolved allegations of market manipulation on the Commodity Exchange Inc. (COMEX) by agreeing to pay $750,000 to federal regulators. This settlement arose from accusations of “spoofing,” a strategy where bids are placed on commodities with the intention of canceling them before execution to influence market prices.
The Lawsuit
In August 2022, the Commodity Futures Trading Commission (CFTC) filed a civil lawsuit against Shak, alleging deceptive practices between February 2015 and March 2018. The lawsuit contended that during this period, Shak placed significant orders for gold or silver futures contracts without intending to fulfill them, while simultaneously executing genuine orders on the opposite side of the market.
Settlement Terms
Despite his confidence in defending himself, Shak opted to settle the matter to avoid prolonged and costly legal proceedings. As part of the settlement, Shak did not admit to any wrongdoing but agreed to specific conditions, including refraining from trading commodity interests, and refusing funds for selling commodities.
Previous Regulatory Encounters
This isn’t the first time Shak has faced regulatory scrutiny. In 2013, he paid a $400,000 fine to the CFTC for attempting to manipulate crude oil futures prices on the New York Mercantile Exchange (NYMEX). Following this incident, he received a two-year ban from trading futures contracts and later faced a $100,000 fine for violating the ban.
Dan Shak’s Professional and Personal Background
Despite these legal challenges, Shak has achieved significant success as a poker player, earning substantial winnings from tournaments. With a background in commodities trading, Shak founded the hedge fund SHK Management.
His personal life, including a high-profile divorce case with ex-wife Beth Shak in 2012, has also garnered media attention.
Conclusion
Shak’s settlement underscores the intricate relationship between high-stakes finance and professional poker, as well as the legal and personal hurdles that can accompany such endeavors.
