Former Commodities Broker Pleads Guilty to Fraud

A former broker pleaded guilty Tuesday to charges that he defrauded his employer of more than $1 million in a scheme involving illegal trading at the Chicago Mercantile Exchange.

Jeffrey Donnelly, 28, of Chicago, a former trader in Standard & Poor’s 500 stock index futures contracts, pleaded guilty to two counts of commodities fraud, said Assistant U.S. Attorney Howard Pearl.

U.S. District Judge James Alesia set April 7 for sentencing, Pearl said. Donnelly, a former employee of CRT Services Inc., faces a maximum penalty of 10 years in prison and a $1-million fine.

Under a plea agreement, Pearl said, the government reserves the right to grant Donnelly immunity from prosecution in return for his testimony.