Wednesday October 30, 2013 2:40 PM
Editor's Note: Quotes attributed to Andrew Maguire were not edited and appear in the story as were presented in his letter.
(Kitco News) - The famed precious metals whistleblower has taken a stand against the allegations made against him at last Thursday's Silver Summit.
Andrew Maguire, who allegedly told U.S. regulators that gold and silver prices are manipulated by the likes of JPMorgan Chase, had allegations made against him during the conference in Spokane by New York-based research firm CPM Group.
Since then, Kitco News has reached out to Maguire for an interview to address the issues raised; on Tuesday he submitted a written response to Kitco News regarding the allegations made.
Maguire made it clear that he will not be making any further statements on this issue.
"In providing this response, it is not my intention to perpetuate a distracting and time wasteful exercise and will, therefore, not make any further comments relating to this matter as not only is it a waste of everybody's time but it attempts to detract from the key issues of my work," he said in the letter.
The letter, also published on multiple sites Tuesday, stated, "Last week, an attempted attack on me was made based upon unreliable misinformation. The most important question to ask from it is why?"
CPM Group's front man Jeffrey Christian spoke on the morning of October 24, ending his presentation with harsh words for GATA, the Gold-Anti Trust Action Committee - the group that originally cast the spotlight on Maguire.
Immediately following the presentation, Kitco News caught up with GATA's Bill Murphy, who defended its star witness.
GATA brought Maguire to the forefront years ago, stating he had been told first-hand by silver traders at JPMorgan that they made money by manipulating precious metals markets. GATA's Bill Murphy later presented Maguire's evidence to the CFTC in 2010.
In the letter, Maguire stated that he was attacked because he is, "exposing the imminent default of the LBMA unallocated bullion banking system. Ever since JC [Jeffrey Christian] of CPM Group made the mistake of admitting that a 100/1 leverage was routinely employed by the LBMA Bullion banks, it would appear his credibility with regard to his industry peers, was brought into question by exposing a default vulnerability of the entire LMBA unallocated Bullion banking system. My work in telegraphing and publicising this information has put him on the defence to try put negative spin on my highly successful trading career."
The tumultuous past between GATA and Christian dates back to when they debated each other over the topic of silver manipulation during the 2011 Silver Summit. GATA believes the prices of gold and silver are rigged, whereas Christian firmly disputes this.
During Christian's presentation he questioned Maguire's trading experience. According to Christian, Maguire's background is in vehicle car leasing.
However Maguire refuted the claims in his letter, "It mystifies me as to why my 35+ trading and banking history is of such importance when I am recognised by my peers as an international and respected trade and investment advisor providing over 20 years of service to institutions and accredited investors."
Maguire also clarified misconceptions of the companies that he has worked for over the years. During the 2010 CFTC hearing, GATA had presented Maguire as a Goldman Sachs employee, a claim also made on his Wikipedia page, which has now been revised since the release of the article.
"I am recognised as a Metal Trading specialist and an accredited CFTC 'whistleblower' and I want to make the following information categorically clear. I have never said I worked for Goldman Sach's. This no doubt arose because J Aron was taken over by Goldman Sachs and I suspect that is how people have wrongly attributed to me that I worked at GS. With regard to my tenure at J Aron, this was a very short term junior position taken 41 years ago coinciding with my 1st emigration to Canada and I do not attribute any of my trading experience or skill set to them."
Maguire added, "My fulltime institutional banking career started in Canada in 1972, at Associates Capital International, a division of Gulf and Western, prior to its acquisition by Citigroup, where I fulfilled numerous senior management roles in both Canada and later in the UK, specialising in derivatives trading. I left ACI in 1982 to become an independent trader, specialising in the precious metals markets whilst also pursuing several other business opportunities."
He also outlined that the accusations that one of his previous companies went bankrupt is false, "False information was recently given that one of my companies, Custom Lease Capital, had failed and inferred that it was my sole business interest, this is totally untrue. I personally received an Entrepreneur Award in 1992 for excellence for this company and was sold in good legal standing."
In the letter, Maguire also pointed out that regardless of his history, having institutional background is not necessary to become a trader.
"It is not a prerequisite that if one has not worked at GS or JPM, one is not an accredited trader. Many of the most successful traders do not work or never have worked for these organisations. However, I do have very good contacts at both of these banks," he said.
Read the latest news in gold and precious metals markets at Kitco News.
By Daniela Cambone of Kitco News; firstname.lastname@example.org