CFTC Says AlphaMetrix Misappropriated Funds

Nov 6 2013 | 10:35am ET

The U.S. Commodity Futures Trading Commission has sued AlphaMetrix, accusing the hedge-fund services firm of misappropriating $2.8 million.

The lawsuit stems from AlphaMetrix's failure to reinvest fee rebates due its commodity-pool participants. "Instead, AlphaMetrix transferred these funds from accounts held in the name of commodity pools that it operates into bank accounts held in AlphaMetrix's name," the CFTC alleges.

The CFTC is seeking an asset freeze. AlphaMetrix said last week it would begin closing its investment pools, after the National Futures Association ordered it to pay clients about $600,000 by the end of last week. Earlier in October, AlphaMetrix warned clients that it had "encountered significant cash-flow issues."


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...