Tuesday, 26 July 2016
Last updated 8 hours ago
Jan 13 2012 | 10:33am ET
A former hedge fund manager who admitted to threatening the lives of a raft of government officials has said that the Commodity Futures Trading Commission offered to settle its civil case against him.
Vincent McCrudden told U.S. District Judge Denis Hurley that the regulator would settle for a $175,000 fine and a lifetime ban from the securities agency. The CFTC sued McCrudden for launching an unregistered fund; the action precipitated the Hybrid Fund II manager's online campaign against CFTC Chairman Gary Gensler and 46 others, including Securities and Exchange Commission Chairman Mary Schapiro. According to prosecutors, McCrudden posted an "execution list" with the admonition, "go buy a gun, and let's get to work in taking back our country from these criminals." He was also accused of sending an e-mail, designed to look as though it had come from Gensler, to Daniel Driscoll of the National Futures Association.
"It wasn't ever a question of 'if' I was going to kill you, it was a question of when," McCrudden wrote.
McCrudden, who has accused the regulators of having a vendetta against him, pleaded guilty to two counts of transmission of threats to injure in July. He faces up to 10 years when he is sentenced.
For now, however, he's concerned with the CFTC's lawsuit. McCrudden wrote to Hurley, who is also presiding over the CFTC civil case, on Jan. 6 that settlement talks on Dec. 12 were unsuccessful.
"It's a shame the CFTC is allowed to pursue, and commit valuable resources and millions of taxpayer dollars on a small businessperson like me," McCrudden wrote. "Manpower and money that could have been better utilized in pursuit of real regulation and enforcement like the current situation of MF Global and the alleged misappropriation of segregated customer funds in the astonishing amount of greater than $1 billion."