Release: 5690-09
For Release: August 7, 2009

CFTC Issues a Notice to Suspend or Modify the Registration of Indicted Floor Broker David G. Sklena of Skokie, Illinois

Washington, DC- The Commodity Futures Trading Commission (CFTC) announced today that it filed an action to suspend or modify the registration of David G. Sklena of Skokie, Ill. Sklena has been a registered floor broker since 1987.

The CFTC’s Notice of Intent to Suspend or Modify Registration, filed on August 7, 2009, is based upon a criminal indictment issued against Sklena in March 2009 by the United States Attorney for the Northern District of Illinois. According to the Notice, the indictment charges Sklena with eleven federal felonies, including commodity fraud, noncompetitive futures contract trading and wire fraud.

The Notice states that, because the indictment charges Sklena with violations of federal law that would reflect on the honesty or the fitness of Sklena to be a fiduciary, Sklena’s continued registration may pose a threat to the public interest or may threaten to impair public confidence in markets regulated by the CFTC.

The Notice states that Sklena was the subject of two disciplinary actions by the Chicago Board of Trade (CBOT). In February, 2003, the CBOT fined Sklena $25,000 and suspended him from trading for 15 business days for failing to execute orders in the open market, among other CBOT rule violations. In March, 2007, the CBOT fined Sklena $125,000 and suspended him from trading for 75 business days for noncompetitively trading futures contracts, among other CBOT rule violations.

Sklena may submit a written response to the Notice within 20 days, or he may request an oral hearing.

The CFTC in 2008 Filed Charges Against Sklena Alleging Fraud in the Trading of Five-Year Treasury Note Futures

In January 2008, the CFTC filed a complaint against Sklena (see CFTC Press Release 5434-08, January 10, 2008). The CFTC’s complaint 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 specifically alleged 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 alleged 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 following CFTC Division of Enforcement staff are responsible for this registration action: Camille M. Arnold, Susan Gradman, Scott Williamson, Rosemary Hollinger and Richard Wagner.

Media Contacts
Scott Schneider
202-418-5174

Dennis Holden
202-418-5088

Last Updated: August 7, 2009