For Release: March 30, 2009
CFTC Restricts the Registrations of Commodity Professionals John C. Glase, Sutherland Group, Inc., and Skibo Asset Management, LLC
Washington, DC – The registrations of John C. Glase, Sutherland Group, Inc. (Sutherland) (previously named Carnegie Trading Group, Ltd., Inc. (Carnegie)), and Skibo Asset Management, LLC (Skibo), all of Cleveland, Ohio, have been restricted by the U.S. Commodity Futures Trading Commission (CFTC), based in part upon a failure to pay monetary penalties previously ordered by a federal district court.
Sutherland is registered as an introducing broker (IB) and commodity trading adviser (CTA), Skibo is registered as a CTA, and Glase is registered as an associated person and is a principal of both Sutherland and Skibo.
The CFTC order stems from an administrative disqualification action filed on July 30, 2008. The CFTC specifically alleged that good cause existed for this action in part because Glase and Carnegie had paid only $1,256 of a $361,371 fraud judgment entered against them by the U.S. District Court for the Northern District of Ohio on June 27, 2006 after a bench trial. (See CFTC Press Release 5197-06, July 13, 2006.)
The CFTC order, entered on March 30, 2009, accepts an offer of settlement by Glase and the two companies. The order requires Sutherland and Skibo to make complete audio recordings of all telephone conversations between their sales representatives and/or principals on one hand, and existing and/or prospective customers on the other hand, including retail forex customers, and to retain such recordings for a period of five years.
The order also requires that the registration of any of the registrants will be automatically suspended if Glase or the two companies are charged in a proceeding with violating the terms of a CFTC order, violating the terms of a federal court order enjoining violations of the federal commodity laws or regulations, or certain other disciplinary offenses.
The following CFTC Division of Enforcement staff are responsible for this registration action: William Janulis, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: March 31, 2009