New York Hedge Fund Manager Banned From Commodities Trading

Dec 22 2008 | 6:54am ET

U.S. regulators have imposed a permanent commodities trading ban against New York-based hedge fund Linuxor Asset Management and its principal, Abbas Shah. The Commodity Futures Trading Commission has also imposed a $200,000 fine on Shah and his money management shop.

The ruling follows a 2005 complaint charging Shah and Linuxor with defrauding fund participants in the Linuxor Global Macro Fund. Shah managed the hedge fund, served as its principal, and acted as its trading advisor.

Specifically, the order finds that Shah and Linuxor committed fraud by misrepresenting the value of the Linuxor Global Macro Fund. In one instance, Shah sent an email that materially misrepresented the net asset value of the fund by approximately $4 million, and another email falsely claimed success in recovering prior substantial losses.

The order also finds that the defendants failed to send to fund participants the required quarterly statements for 2002 to 2004 and a timely annual report for 2002. The defendants also commingled participants’ funds with the property of others, in violation of CFTC regulations.

 


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of