For Release: January 9, 2007
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) today announced the issuance of an order filing and simultaneously settling charges against Harry Karkazis of Lake Forest, Illinois, a registered floor broker, for indirectly trading opposite customer orders in the Standard and Poor’s 500 commodity futures contract at the Chicago Mercantile Exchange. Karkazis was also charged with failing to submit his trading cards on a timely basis and with failing to account for the whereabouts of one of his pre-numbered trading cards that he did not submit to his clearing member.
The CFTC order, entered on December 27, 2006, finds that, between April 2002 and July 2002, Karkazis profited from indirectly trading opposite his customers. That is, Karkazis took the opposite side of his customer orders into his own account through noncompetitive round-turn trades. The order also finds that 64% of Karkazis’ trading cards produced by his clearing member during the investigation were time-stamped late. Finally, the order finds that Karkazis was unable to account for the whereabouts of one of his pre-numbered trading cards that he had failed to submit to his clearing member. The order requires Karkazis to pay a civil monetary penalty of $35,000 and suspends his registration for three months.
The following CFTC Division of Enforcement staff members were responsible for this case: Thomas Koprowski, Charlotte Ohlmiller, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
Last Updated: April 6, 2007