Trader Accused Of Using Disguises Pleads Guilty To Fraud
CHICAGO (AP) _ A man accused of disguising himself with a wig to help carry out a fraudulent trading scheme at the Chicago Board of Trade pleaded guilty Monday to conspiracy and wire fraud.
Daniel Dewey, 39, entered the plea in U.S. District Court as part of an agreement in which he and two other men will testify against a former broker at the Board of Trade.
Prosecutors said the scheme involved Dewey - wearing a wig, phony trading jacket and false badges - trading U.S. Treasury bond futures, then submitting the trading card to the former broker, Thompson B. Sanders, 45.
If the trade made money, Sanders would process the trading card through his brokerage business, the indictment charged.
It said that if the trade lost money, Sanders would not process it. The other party to the trade would not be able to trace it because of Dewey’s fake identification.
The other two defendants - David Pelleu, 45, and Dan Kolton, 24 - already have pleaded guilty and are awaiting sentencing.
Prosecutors said the group made thousands of dollars operating the scheme on three days in 1986.
In one instance, however, Sanders and Dewey did not claim one trade of 600 contracts of Treasury bond futures because it turned into a loss of more than $100,000, the indictment stated.
The market rallied the next day, giving them a potential profit of $500,000 on the contracts, but they did not claim it for fear of being found out, the indictment stated.