NFA Suspends New York CTA

Jan 24 2007 | 12:41pm ET

The National Futures Association has suspended New York-based Cornerstone Capital Management, a CPO and CTA, and Joseph Profit, the firm's principal.
      
Profit was suspended for having operated a commodity pool (the Cornerstone Icon Fund) without being properly registered under the Commodity Exchange Act. Profit also allegedly provided false and misleading information to NFA and refused to cooperate in an NFA inquiry.

Although CCM has been registered as a CPO and CTA since August 2005, Profit continually claimed that the Icon Fund had not accepted funds from participants or begun trading. Profit has also claimed that CCM did not have any funds under management. During the course of NFA's investigation, however, Profit admitted accepting funds from participants in the Icon Fund in May 2005 and that Profit has had CTA clients.

As a result of the suspension, CCM and Profit are prohibited from acting in any manner which requires registration under the Commodity Exchange Act and are prohibited from soliciting or disbursing any funds without NFA approval.
      
The suspension will remain in effect until NFA is satisfied that CCM and Profit are in complete compliance with all NFA requirements. CCM and Profit may petition the CFTC for a stay of this action and may also request a hearing before NFA's Hearing Committee.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...