Two Chicago brokers charged with fraud

Two Chicago Board of Trade floor brokers were charged with defrauding customers out of about USD2.1 million, federal regulators said Thursday. The Commodity Futures Trading Commission, which filed the civil complaint in the U.S. District Court for the Northern District of Illinois Wednesday, said Edward C. Sarvey, 45, of Lemont, Ill., and David G. Sklena, 47, of Skokie, Ill., violated federal law. The CFTC alleges that Sarvey took advantage of volatile trading in the futures pit on April 2, 2004, immediately after the federal government that morning released the March 2004 employment statistics, a closely watched economic indicator that affects the market value of Treasury Notes and futures contracts. Within 90 seconds of the report becoming public, prices of the Five-Year Treasury Note futures contracts dropped by more than one point - equal to USD1,656.25 per futures contract - in fast trading, regulators said.