CFTC v. AlphaMetrix, LLC, Case No. 1:13-cv-7896 (N.D. Ill.) On November 6, 2013, the CFTC announced charges against AlphaMetrix, LLC (“AlphaMetrix”), a Commodity Pool Operator and Commodity Trading Advisor. The CFTC alleges that AlphaMetrix misappropriated funds belonging to commodity pools it operated and sent false or misleading account statements to pool participants. According to the CFTC, AlphaMetrix operates nearly 100 commodity pools with around $700 million in assets under management. The CFTC alleges that AlphaMetrix had agreements with certain participants in which AlphaMetrix promised to give a rebate for fees by reinvesting those funds in the pools. Rather than reinvest the money, AlphaMetrix transferred the funds to its parent company, AlphaMetrix Group, LLC. According to the CFTC, AlphaMetrix sent pool participants fake account statements that made it appear as though the money had been invested. The CFTC obtained a consent restraining Order that freezes AlphaMetrix’s assets, protects its books and records, and appoints a corporate monitor to oversee the distribution of pool funds to participants. In addition to the emergency relief, the CFTC seeks preliminary and permanent injunctive relief, restitution, disgorgement, and civil monetary penalties.
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