For Release: October 8, 2009
CFTC Suspends the Registration of Criminally Indicted Chicago Floor Broker David G. Sklena
Washington, DC – The Commodity Futures Trading Commission (CFTC) suspended the registration of David G. Sklena of Skokie, Ill., who had been a registered CME Group floor broker since 1987.
The suspension is based on a March, 2008, criminal indictment against Sklena issued by the U.S. Attorney for the Northern District of Illinois, charging him with 11 federal felonies, including commodity fraud, noncompetitive futures contract trading and wire fraud. In addition, in January, 2008, the CFTC filed an action charging Sklena with defrauding customers trading Five-Year Treasury Notes futures contracts (see CFTC Press Release 5434-09).
A CFTC Administrative Law Judge (ALJ) issued the registration suspension order that resolved the CFTC’s Notice of Intent to Suspend or Modify Sklena's registration, filed August 7, 2009 (see CFTC Press Release 5690-09).
According to the ALJ’s order, the charges in the indictment, if proven, would reflect on the honesty or the fitness of Sklena to be a fiduciary, and Sklena’s continued registration does, or is likely to, pose a threat to the public interest or threaten to impair public confidence in CFTC-regulated markets.
Specifically, the CFTC’s 2008 complaint against Sklena alleges that in April, 2004, Sklena defrauded customers and committed illegal trade practices in the Five-Year Treasury Note futures pit by noncompetitively trading 2,274 June 2004 Five-Year Treasury Note futures contracts opposite another floor broker. The CFTC’s complaint alleges that Sklena willfully aided and abetted another floor broker in cheating, defrauding and deceiving customers in connection with the trading of commodity futures contracts. The complaint also alleges that Sklena willfully aided and abetted the bucketing of customer orders, entered into accommodation trades and failed to execute trades openly and competitively, all in violation of the Commodity Exchange Act and CFTC regulations. The CFTC’s civil litigation in this action is still continuing.
The order becomes effective, absent appeal, within 18 days of the date that the order is served.
The following CFTC Division of Enforcement staff are responsible for this registration action: Camille Arnold, Susan Gradman, Judith McCorkle, Scott Williamson, Rosemary Hollinger and Richard Wagner.
Last Updated: October 8, 2009