Release: #4014-97 (CFTC Docket No. 93-5)

For Release:April 29, 1997


Settlement Agreement Revokes Engel's Registration with the CFTC and Orders Him to Pay a $75,000 Civil Penalty, Among Other Sanctions

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that it issued an order accepting an offer of settlement from Christopher Engel, a floor broker on the Commodity Exchange Inc., in connection with a complaint filed by the CFTC on March 2, 1993. Engel is registered with the CFTC as a floor broker.

The CFTC order finds that Engel violated provisions of the Commodity Exchange Act (CEA) and CFTC regulations prohibiting wash sales, fictitious sales, accommodation trading, causing the reporting of non bona fide prices, and noncompetitive trading.

In addition, the CFTC order finds that Engel participated in noncompetitive trades with floor brokers and local traders. According to the CFTC order, Engel's noncompetitive trading enabled another broker to bucket indirectly or trade indirectly opposite his orders. The CFTC order further finds that Engel engaged in prearranged trades in which money was passed between Engel and another broker.

Engel, without admitting or denying the findings in the CFTC's order, consented to the entry of a CFTC order:

--finding that Engel engaged in noncompetitive trading and fictitious sales, wash sales and accommodation trading (section 4c(a)(A) of the CEA, and CFTC regulation 1.38(a); and caused prices to be reported which were not true and bona fide (section 4c(a)(B) of the CEA);

--directing Engel to cease and desist from further violations;

--prohibiting Engel from trading on a contract market for nine months;

--revoking Engel's registration with the Commission; and

--directing Engel to pay a $75,000 civil monetary penalty.

Under the settlement, Engel also agreed not to seek registration with the Commission in any capacity for three years except that after one year he may seek to be registered as a floor trader, and, if such registration is granted, he shall be subject to conditional registration with a sponsor for two years. Engel further agreed to cooperate with the CFTC in any ongoing proceeding relating to this matter.

CFTC Commissioner John E. Tull, Jr. dissented from the Commission's acceptance of the offer of settlement of Mr. Engel.