A former broker pleaded guilty to charges he defrauded his employer of more than $1 million in a scheme involving illegal trading at the Chicago Mercantile Exchange.
Meanwhile, another defendant charged with making bogus trades while disguised in a wig remains missing.Daniel Dewey, 39, a former bond futures trader at the Chicago Board of Trade is now the subject of a nationwide manhunt after a fugitive warrant was issued, Assistant U.S. Attorney Ruben Castillo said.
Mr. Dewey was among 10 brokers, traders and other people named in indictments last week by U.S. Attorney Anton Valukas. The men were accused of four separate schemes at the Board of Trade and Chicago Mercantile Exchange.
Jeffrey Donnelly, 28, of Chicago, a former trader in Standard & Poor's 500 stock index-futures contracts, pleaded guilty Tuesday to two counts of commodities fraud.
The plea agreement states that he defrauded his former employee, CRT Services Inc., by diverting money from profitable S&P futures trades to four accounts between January 1984 and July 1986.
Under the agreement, the government reserves the right to grant Mr. Donnelly certain immunity from prosecution in return for his testimony, said Assistant U.S. Attorney Howard Pearl.
U.S. District Judge James Alesia set April 7 for sentencing. Mr. Donnelly faces a maximum penalty of 10 years in prison and a $1 million fine.
Authorities charged that Mr. Donnelly split the profits with four other people after diverting the money. Mr. Pearl said the four agreed to pay income taxes on the money, and Mr. Donnelly received his share, or 35 percent of the profits, in cash.
Mr. Dewey was indicted in Chicago on charges he conspired with three others to use a wig, phony credentials and other paraphernalia to enter restricted areas at the Board of Trade to make certain trades.
The indictment says Mr. Dewey placed orders to buy or sell U.S. Treasury bond futures contracts, then turned the trading cards over to a co-defendant.