>Steven J. Karvellas, the owner of Steven J. Karvellas & Co.
Inc., a New York natural-gas-trading company and the chairman of both the compliance review and adjudication committees for the exchange, admitted that he
client's orders so he
could place his
own trades ahead of theirs.
The fraudulent trading occurred between September 2002 and May 2003, according to the New York County
District Attorney's Office.
As a result, customer orders were executed at a less favorable time or not at all.After pleading guilty to two felony counts related to illegal natural-gas trading, Mr. Karvellas, who is also the owner of Commercial Brokerage Corp.
LLC of New York, an introducing broker, was sentenced to five months in jail, to be followed by five months of probation.Also, he
was forced to disgorge $850,000 in profits and fines, and to forfeit his
license to trade commodities.
In addition to Mr. Karvellas
, three other individuals also pleaded guilty to charges of trading ahead of customer orders.