US: Nymex's Karvellas faced jail

Karvellas has entered into a plea bargain which will result in a five year sentence. He has also agreed to pay fines, penalties and costs of USD850,000.

Karvellas's fraud was simple: he took instructions to purchase shares for customers. But if the trade moved positively, when he did the paperwork, he put the shares in his own name. He would simply tell the customer that the price had moved too quickly beyond the customer's authorised price, sell the shares and pocket the profit. So long as he sold before settlement day, the client's account would never need to be touched.