The US Commodity Futures Trading Commission has filed a complaint alleging registration violations against Vincent Patrick McCrudden of New York, Alnbri Management, and Managed Accounts Asset Management.
McCrudden was the owner and sole officer of New York-based Alnbri and MAAN. MAAM was dissolved in April 2009.
The CFTC complaint, filed in the US District Court for the Eastern District of New York, charges McCrudden with failure to register with the CFTC as an associated person of a commodity pool operator, acting as a commodity pool operator without being registered and failing to give notice of an inaccurate claimed exemption from registration filed with the CFTC.
Specifically, from 8 May 2008 to 30 September 2008, McCrudden allegedly acted as an associated person of MAAM and Alnbri, without being registered, while soliciting customers to participate in the Hybrid Fund II commodity pool. Alnbri is the sole general partner of Hybrid Fund II.
MAAM and Alnbri are charged with acting as unregistered commodity pool operators and failing to meet registration exemption requirements during the relevant period. McCrudden controlled Hybrid Fund II’s operations, according to the fund’s private placement memoranda of 1 March and 1 December 2008.
On or about 12 December 2005, after the National Futures Association disqualified MAAM from registration as a commodity pool operator, McCrudden filed a notice of exemption from registration for MAAM’s operation of the Hybrid Fund II, according to the complaint. The Hybrid Fund II, however, failed required tests to qualify for a commodity pool operator exemption, and McCrudden never registered MAAM as a commodity pool operator with the CFTC, according to the complaint.
In March 2008, McCrudden filed an amendment with the Delaware Secretary of State replacing MAAM with Alnbri as an exempt commodity pool operator of the Hybrid Fund II during the relevant period, according to the complaint. However, Alnbri allegedly never registered with the CFTC as a commodity pool operator or filed an exemption. Moreover, at no time was McCrudden registered as an associated person of MAAM or Alnbri, despite soliciting participants to invest in the Hybrid Fund II and supervising Hybrid Fund II employees, the complaint alleges.
In its continuing litigation, the CFTC seeks civil monetary penalties, permanent registration and exemption bans against the defendants, restrictions on the defendants’ ability to act as principals providing commodity trading advice and permanent injunctions prohibiting trading and further violations of the federal commodities laws.
