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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR