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."


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...