The Commodity Futures Trading Commission has settled an administrative action against futures trader John Hucko for engaging in a trading scheme that defrauded his firm, SMW Trading Co. According to the CFTC, for the six months beginning in October 2001, Hucko worked for the Chicago firm and assigned profitable trades to an SMW proprietary account he traded on behalf of SMW. He would assign unprofitable trades, the agency alleged, to SMW proprietary accounts traded by other firm traders.
The CFTC said that during the time of the scheme, Hucko hid from SMW at least $1.2 million in unprofitable trades.
Without admitting or denying the findings, Hucko has agreed to be permanently barred from trading and to pay a $50,000 fine.
Source: Compliance Reporter