Hedge Fund Lake Shore Barred From Futures Trading

May 21 2009 | 9:27am ET

Accused of defrauding investors of $11 million, Chicago hedge fund Lake Shore Asset Management has been effectively barred from trading on U.S. futures exchanges for failing to cooperate with investigators.

The National Futures Association permanently expelled Lake Shore from membership, which will keep it from trading on domestic futures exchanges, last week. The NFA took the move after an unnamed principal of Lake Shore stopped cooperating with its probe of alleged fraud at the firm.

Lake Shore, formerly chaired by ex-Chicago Mercantile Exchange Chairman Laurence Rosenberg, was charged with defrauding investors two years ago, freezing the hedge fund’s assets. According to the Commodity Futures Trading Commission, Lake Shore claimed it had $1 billion in assets, but actually had less than half that. The regulator also says the hedge fund hid losses of about $37.5 million between 2002 and 2007, and misappropriated $11 million.

The CFTC has also charged Lake Shore President Philip Baker with fraud.


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