Brian Keane, a former New York Mercantile Exchange (NYMEX) clerk from Valley Stream, New York, has been penalized $90,000 and permanently banned from trading in the commodities markets for engaging in trade allocation fraud. The U.S. Commodity Futures Trading Commission (CFTC) filed and settled charges against Keane on October 6, 2008.
The CFTC order details that Keane fraudulently allocated favorable trades to an account from which he personally benefited while employed by a NYMEX member firm. This involved diverting profitable transactions originally filled for customers to his own account.
This action by the CFTC was the result of a joint investigation with the New York County District Attorney’s Office (NYCDAO), focusing on abusive trading practices on the NYMEX. Keane had previously pleaded guilty to a felony violation of New York’s General Business Law anti-fraud provision on March 20, 2008, for the same conduct. He served a four-month jail sentence as a result of the criminal case.
The CFTC acknowledged the assistance of the NYCDAO and the NYMEX compliance staff in the investigation. The case was led by CFTC Division of Enforcement staff including Judith Slowly, Philip Rix, Sheila Marhamati, Steven Ringer, Lenel Hickson, and Vincent McGonagle, with additional assistance from Young Hwan Byeon, an Economist from the Korean Financial Supervisory Service.
The settlement requires Keane to pay the $90,000 civil monetary penalty and permanently prohibits him from engaging in any trading activity in the commodities markets. The order was issued on October 6, 2008, in Washington, D.C.
Source: CFTC.gov
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