CFTC SETTLES FRAUD CHARGES AGAINST JOHN HUCKO
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the simultaneous filing and settlement of an administrative action against John Hucko of Chicago, Illinois.
The CFTC’s order finds that, between October 2001 and May 2002, Hucko was employed at SMW Trading Company, Inc., a registered futures commission merchant located in Chicago, Illinois. According to the order, Hucko engaged in a fraudulent trading scheme that victimized SMW. According to the order, in the scheme Hucko assigned profitable trades to an SMW proprietary account he traded on behalf of SMW, and assigned unprofitable trades to SMW proprietary accounts traded by other SMW traders. The order finds that SMW based Hucko’s compensation during this period, in part, on his performance trading the proprietary account, and he engaged in the fraudulent trading scheme in an effort to overstate the account's profits. According to the order, Hucko during this time hid from SMW at least $1.2 million in unprofitable trades by assigning them to proprietary accounts traded by others.
The CFTC’s order permanently prohibits Hucko from trading and orders him to pay a fine of $50,000.
Hucko neither admitted nor denied the findings in the CFTC’s order.
The following Division of Enforcement staff were responsible for this action: David Terrell, Elizabeth M. Streit, Charlotte A. Ohlmiller, Scott R. Williamson, and Rosemary Hollinger.
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Joan M. Manley