Release: 4980-04 (CFTC Docket No. 04-23)
U.S. COMMODITY FUTURES TRADING COMMISSION FINDS THAT NYMEX FLOOR BROKER DEFRAUDED CUSTOMER
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order (order) settling an enforcement action against Izmir Mehmedovic of Glendale, New York, a registered floor broker in the crude oil ring of the New York Mercantile Exchange (NYMEX).
The CFTC order finds that on September 18, 2002, Mehmedovic violated the anti-fraud provisions of the Commodity Exchange Act (CEA) by knowingly engaging in at least one instance of trading ahead of an executable customer order in the crude oil ring of the NYMEX at a price better than that received by his customer. According to the order, Mehmedovic allocated the more profitable trade to his personal account.
The order imposes various sanctions on Mehmedovic, including a cease and desist order, a $10,000 civil monetary penalty, a three-month suspension of his floor broker registration beginning on September 1, 2004, a three-month personal trading prohibition, and an 18-month prohibition on trading for others.
Mehmedovic consented to the entry of the order without admitting or denying the order’s findings.
The following CFTC Division of Enforcement staff members were responsible for this case: Michael R. Berlowitz, W. Derek Shakabpa, John J. Cipriani, David Acevedo, Lenel Hickson, Jr., Stephen J. Obie, and Richard B. Wagner.