Oil trader faces criminal charges

Former NYMEX director accused of cheating clients, 6 others being arrested.

NEW YORK (CNNMoney.com) — New York Mercantile Exchange energy trader Steven Karvellas, a former NYMEX director, is pleading guilty Tuesday to cheating clients.

Six other traders are also being arrested for allegedly engaging in similar schemes on the NYMEX floor, according to the Manhattan District Attorney’s office.


Karvellas will plead guilty to buying energy futures contracts per client orders, but keeping the contracts for his own account if they rose in price, the DA’s office said.

Trading in energy contracts has come under increased scrutiny in recent years as oil prices surged. Investors of all types have been attracted to the rising prices, and trading activity has risen along with the price of crude.