FORMER CEO OF COMMODITIES BROKERAGE FIRM SENTENCED IN MANHATTAN FEDERAL COURT TO 30 MONTHS IN PRISON FOR NATURAL GAS OPTIONS FRAUD SCHEME

26 April 2012 – Preet Bharara, the United States Attorney for the Southern District of New York, announced that KEVIN CASSIDY, the CEO of the commercial brokerage firm Optionable, was sentenced today to 30 months in prison for his participation in a scheme to defraud the Bank of Montreal (“BMO”) by deliberately misstating the value of the bank’s multi-million dollar natural gas derivatives portfolio.

As part of the scheme, CASSIDY conspired with David Lee, BMO’s former lead natural gas derivatives trader, to fraudulently subvert the process by which BMO attempted to independently verify the value of its natural gas derivatives portfolio. Their conspiracy allowed Lee’s own mismarking scheme to go undetected. CASSIDY, who previously pled guilty in August 2011 to one count of conspiracy to commit wire fraud, was sentenced earlier today by U.S. District Judge Thomas P. Griesa.

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