Sunday, 14 February 2016
Last updated 1 day ago
Sep 26 2007 | 1:07pm ET
One has to wonder about a firm that names itself after a flesh eating fish. The U.S. Commodity Futures Trading Commission said today that a federal court in California has fined Robert Joseph Beasley and his firm, Longboat Global Funds Management, for committing fraud by misrepresenting certain investments held by his commodity pool, Piranha Capital.
Beasley, of Whitefish, Montana, has been ordered to pay $13.8 million in restitution and $1.5 million in penalties for failing to disclose that he had personal financial interest in investments in Piranha.
Specifically, the complaint alleged that, among other things, the defendants directed and approved loans from the commodity pool, Longboat, totaling approximately $4 million to entities Beasley controlled without fully disclosing his relationship to those entities.
The complaint further alleged that the defendants misrepresented the security of these loans and that Beasley disregarded his duties by failing to collect interest or principal due and by using the value of the unpaid interest payments to calculate his fees.
The order imposes restitution totaling $13.8 million, of which Beasley is responsible for $4.5 million. The order also requires Beasley to pay a $500,000 civil monetary penalty and Longboat to pay a $1 million penalty.
The order also permanently prohibits the defendants from engaging in any commodity-related activity and appoints Robb, Evans and Associates as the permanent receiver for defendant Longboat.