CFTC Charges CPO With Fraud

Apr 20 2007 | 1:59pm ET

Another day brings another “alleged” crooked investment manager—this time a commodities trading advisor.The Commodity Futures Trading Commission recently filed a complaint against Albert Parish, Jr. of Summerville, South Carolina for shamelessly inflating his firm’s assets under management.

Beginning in January 2003, Parish misrepresented the total amount of funds contained in his firm’s investment pools, and the total amount of funds invested in one particular pool dubbed Futures Pool, according to the CFTC. Specifically, he allegedly stated on his website and to an investment advisor that at the end of 2006 the total value of the investment pools was approximately $134 million, and that the value of the Futures Pool, which purportedly invested in the commodity and stock futures and options markets, was approximately $52 million as of the end of February 2007.

However, the CFTC alleged that the Futures Pool only had three open futures accounts that, as of Feb. 28, had a cumulative value of only $120,000. Also, Parish allegedly provided account statements to at least three Futures Pool participants that, in the aggregate, represented that the Futures Pool had a value of at least $970,299 as of Feb. 28. However, since January 1, 2005, the total value of Futures Pool assets never exceeded $150,000.

The CFTC is seeking permanent injunctive relief, return of funds to defrauded customers, repayment of ill-gotten gains, an award of civil penalties and imposition of a permanent commodities trading prohibition.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

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...