Steven Karvellas, a former board member of the New York Mercantile Exchange, will spend five months in prison after pleading guilty yesterday to charges involving fraud and tampering with evidence, Reuters reports.
From Reuters:
Between September 2002 and May 2003, while he was serving as chairman of the exchange's Adjudication and Compliance Review Committee, Karvellas delayed the allocation of customer orders and "if the market went up, he would take that order for himself," said Manhattan District Attorney Robert Morgenthau, likening Karvellas to "a fox in the chicken house."
By either not filling the orders or filling them at less favorable prices, Karvellas "was able to engage in risk-free investing and deprived the customer of the profits it deserved," according to the plea agreement he signed.
Full article here.
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