For Release: October 6, 2008
Washington, DC − The U.S. Commodity Futures Trading Commission (CFTC) today filed and settled charges against former New York Mercantile Exchange (NYMEX) clerk Brian Keane of Valley Stream, New York, requiring him to pay a $90,000 civil monetary penalty for fraudulently allocating favorable trades to an account from which he benefited.
The CFTC order, issued on October 6, 2008, also permanently prohibits him from trading in the commodities markets.
This CFTC action resulted from a joint CFTC cooperative enforcement investigation with the New York County District Attorney’s Office (NYCDAO) of abusive trading practices on the NYMEX. The CFTC charged Keane, a former employee of a NYMEX member, with diverting profitable transactions that had been filled for customers to an account from which he benefited.
In the related criminal matter, Keane pled guilty on March 20, 2008 to the felony state crime of violating the anti-fraud provision of New York’s General Business Law for the same underlying conduct and received a four-month jail sentence, which he has already served.
The CFTC would like to thank the NYCDAO and the NYMEX compliance staff for their assistance with the investigation.
The following CFTC Division of Enforcement staff are responsible for this case: Judith Slowly, Philip Rix, Sheila Marhamati, Steven Ringer, Lenel Hickson and Vincent McGonagle. In addition, Young Hwan Byeon, an Economist from the Korean Financial Supervisory Service, assisted in this matter.
Last Updated: October 6, 2008