A federal judge sentenced a former Chicago Board of Trade bond trader to 41 months in prison for trying to corner the market on Treasury bills, a scheme that cost investment firms about $8 million.
Darrell Zimmerman, 36, had pleaded guilty in September two counts of wire fraud.U.S. District Judge William Hart also ordered Zimmerman to serve three years of supervision after he is released from prison and to be deported to his native Canada. Zimmerman also must pay $10,000 in restitution.
Zimmerman, who had fled to Canada for three years, surrendered earlier this year.
Zimmerman and an accomplice, Anthony Catalfo, had been accused of engaging in trades in October 1992 in Treasury bond futures and options that would influence the trading of others. Prosecutors said the two hoped to drive prices lower to benefit their positions.
The scheme nearly drove influential firm Lee B. Stern & Co. out of business.