Release: 5526-08

For Release: July 30, 2008

CFTC Files Action to Revoke the Registrations of John C. Glase and Two Ohio Companies

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) has begun proceedings to revoke the registrations of John C. Glase, Sutherland Group, Inc. (Sutherland), formerly known as Carnegie Trading Group, Ltd., Inc. (Carnegie), and Skibo Asset Management, LLC (Skibo), all of Cleveland, Ohio. Sutherland is a registered Introducing Broker and Commodity Trading Advisor (CTA), Skibo is a registered CTA, and Glase is registered as an Associated Person and listed as a principal of both Sutherland and Skibo.

The registration revocation action against Glase and Sutherland is based on previous fraud judgments and monetary penalties entered against Glase and Carnegie. The action against Skibo, which is not subject to the aforementioned judgments, is based on statutory grounds that provide that Skibo’s registration may be revoked if its principal’s registration (i.e., Glase’s) has been or could be revoked.

The CFTC filed a Notice of Intent to Suspend, Revoke or Restrict Registrations (Notice) on July 30, 2008, alleging that Glase, Sutherland and Skibo are subject to statutory disqualification of their registrations based on a judgment entered by the U.S. District Court for the Northern District of Ohio on June 27, 2006 after a bench trial. (See CFTC News Release 5197-06, July 13, 2006).

In the judgment order, Glase was held liable as a controlling person of Carnegie for the fraudulent acts of certain Carnegie employees in connection with the solicitation of and trading recommendations to commodity options customers. He was also found directly liable for failing to supervise diligently Carnegie’s employees.

The June 27, 2006 judgment, among other things, ordered that Glase and Carnegie disgorge earnings in the amount of $32,850, pay certain listed customers $229,971.31 as restitution, and pay a civil monetary penalty of $98,550.

The following CFTC Division of Enforcement staff are responsible for this registration action: William Janulis, Ralph DerAsadourian, Rosemary Hollinger and Richard Wagner.

Media Contacts
Ianthe Zabel

Dennis Holden

Last Updated: July 30, 2008