Action against Defendants, a hedge fund and its two principals, for alleged fraudulent solicitations and misappropriation of investor funds. According to the CFTC, Defendants misrepresented to investors their level of experience and plans to invest funds in futures contracts. The CFTC alleges that Defendants instead used investor funds for their personal benefit and concealed losses in communications to investors. The CFTC also alleges that Defendants failed to register their commodity pool. One Defendant principal has agreed to pay a $100,000 civil penalty. The Defendant hedge fund and other Defendant principal were the subjects of a default judgment requiring them to pay, jointly and severally, a $721,650 civil penalty. The Defendants are also required to pay $240,550 in restitution to pool participants. Both orders impose permanent trading and registration bans. Parallel criminal charges have been filed.

CFTC Press Release

Consent Order

Default Judgment