For Release: July 29, 2002
CFTC FINES FORMER TRADING ADVISOR FOR HIS ROLE IN MULTI-MILLION DOLLAR FRAUDULENT ALLOCATION SCHEME
Michael Skrable Agrees to Be Prohibited From Trading and From Registration
WASHINGTON, D.C. -- The United States Commodity Futures Trading Commission (CFTC) announced today that an order was entered on July 26, 2002, against Michael Skrable of Toms River, New Jersey, a respondent in In the Matter of U.S. Securities and Futures Corp., et al.
The CFTC, according to the order, found that during the period beginning in early 1996 through October 1998, Skrable participated in, and aided and abetted, the fraud of a foreign broker located in Hamburg, Germany. Skrable participated in the fraud by providing unallocated futures orders to a registered futures commission merchant, according to the order, knowing that the foreign broker was subsequently fraudulently allocating the trades. By those acts, the CFTC order found, Skrable defrauded his clients, the foreign broker’s customers. The order also finds that Skrable violated the Commodity Exchange Act (CEA) by acting as an unregistered commodity trading advisor.
The order requires Skrable to cease and desist from further violations of the CEA, to pay a civil monetary penalty of $12,500, and prohibits him from trading on any registered entity for two and a half years, and from registering for five years.
This matter is proceeding to trial this week against all remaining respondents.
The following Division of Enforcement staff are responsible for the case: Charles Sgro, Lenel Hickson, Beth Morgenstern, Karl Cooper, Karin Roth, Manal Sultan, Sheila Marhamati, Eliud Ramirez, and Judith Slowly.
Media Enforcement Contact:
CFTC Deputy Regional Counsel
Eastern Regional Office, Division of Enforcement
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