Former US Commodity Pool Operator and Commodity Trading Advisor, AlphaMetrix LLC, has agreed to pay $5.6 million in restitution and civil monetary penalties in relation to using money the company owed fund managers and investors to prop up the firm’s ailing finances last year, according to the U.S. Commodity Futures Trading Commission (CFTC).
Last year, the National Futures Association shut the company down, while the CFTC obtained a restraining order and an injunction on the company’s assets. The firm operated closet 90 pools with about $700 million of assets under management as of August 2013.
The CFTC allegations alleged that between January and August last year, the firm failed to reinvest at least $2.8 million of funds owed to participants.
Changing the Face of AML with Self Service AnalyticsGo to article >>
According to the court filings, made by the federal receiver appointed to liquidate the company’s assets and repay investors, fund managers and creditors of the company, the firm already owes $3.5 million in rebates to investors and $7.2 to fund managers.
The civil lawsuit filed by the court-appointed receiver is still pending in the Northern District court of Illinois. The receiver is looking to recover funds from former executives of AlphaMetrix and its parent company AlphaMetrix Group.
The settlement with the CFTC includes $2.8 million for restitution and $2.8 million for civil monetary penalties.