CFTC Sanctions Gelber Group $750,000 for Trading Abuses on Two Exchanges

The CFTC filed and simultaneously settled charges against the Gelber Group of Chicago for reporting orders during pre-opening trading sessions that Gelber had no intention of executing. The CFTC also settled charges for engaging in wash sales against both Gelber and former Gelber trading manager Martin A. Lorenzen, ordering the two to pay a civil monetary penalty.

Commissioner Jill Somers released a statement in support of the action and settlement. Commissioner Chilton, while agreeing with the decision, disagreed with the amount of the penalty, stating that he would "prefer that the Commission send an even stronger signal that the harm caused by wash sale violations will be taken very seriously."

See: Order: Gelber Group, LLC, and Order: Martin A. Lorenzen.