CFTC Says AlphaMetrix Misappropriated Funds

Nov 6 2013 | 11:35am 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."


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...