Thursday, 29 September 2016
Last updated 16 hours ago
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."