Hunts Charged With Illegal Silver Trading

The Commodity Futures Trading Commission today accused Texas billionaire Nelson Bunker Hunt, his brother William and several other individuals and companies of illegally manipulating the silver market during late 1979 and early 1980.

The complaint said the defendants acquired more than 100 million ounces of silver bullion during a period of a little over six months, driving the price artificially high.

When prices started to fall in early 1980, the complaint alleged, the defendants took a number of steps to halt the decline and, by March 27, 1980, had outstanding silver-related loans of more than $1.2 billion.

Moreover, the complaint alleged that the defendants attempted to circumvent actions directed at them by the Commodity Exchange Inc. and the Chicago Board of Trade.

Sanctions available to the trading commission include civil penalties of up to $100,000 for each of several violations alleged in the complaint, and prohibition from trading on markets regulated by the commission.