Friday, 29 August 2014
Last updated 10 hours ago
Mar 31 2010 | 2:33am ET
While a cadet at the U.S. Military Academy, Enrique Villalba was subject to a strict honor code. According to the Commodity Futures Trading Commission, he left that honor code at West Point.
The regulator has alleged that Villalba’s commodity futures hedge fund, Money Market Alternative, was nothing more than a Ponzi scheme. In a complaint filed this week, the CFTC accuses Villalba of defrauding investors of $37.5 million from at least 1996 through November.
Villalba misappropriated some at least $10 million of that money, according to the complaint, using more than $7 million to make Ponzi-style payments to investors and at least $3 million to finance his coffee business, buy real estate and on other expenses. Of the $23.2 million he did invest, he lost $17 million, according to the CFTC.
To hide those massive losses, Villalba allegedly told clients the fund was consistently making money, in at least one case using phony commission merchant statements to show off his profitable trades.
The CFTC is seeking restitution, disgorgement and penalties against Villalba and Ohio-based MMA.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...