Former precious metals traders at JPMorgan Chase, Gregg Smith and Michael Nowak, have been sentenced for their involvement in fraud, attempted price manipulation, and spoofing, according to a statement from the U.S. Justice Department.

Gregg Smith, residing in Scarsdale, New York, received a two-year prison sentence along with a $50,000 fine. Michael Nowak, residing in Montclair, New Jersey, was sentenced to one year and one day in prison and a $35,000 fine.

Their actions were part of an extensive market manipulation scheme that unfolded over eight years, spanning from 2008 to 2016. The scheme involved tens of thousands of illicit trading sequences, leading to losses exceeding $10 million for market participants, the Justice Department revealed.

Spoofing, a tactic that involves placing and rapidly canceling orders to deceitfully create an illusion of heightened demand or supply, played a central role in this manipulation. In 2010, spoofing was declared illegal through the enactment of the Dodd-Frank Act by the U.S. Congress, following the aftermath of the financial crisis.

In the previous year, Smith and Nowak were found guilty of fraud and related charges, though acquitted of racketeering and conspiracy in a trial. Nowak faced convictions on over a dozen charges, including fraud, spoofing, and attempted market manipulation. Meanwhile, Smith was convicted on 11 charges.

JPMorgan had previously reached an agreement in 2020, admitting wrongdoing and agreeing to pay over $920 million to settle with the Justice Department and the Commodity Futures Trading Commission for these and other instances of traders' misconduct.