CFTC seeks to revoke registrations of Brian Kim and Liquid Capital Management
The US Commodity Futures Trading Commission has filed a notice of intent to revoke the registrations of Brian Kim and Liquid Capital Management (LCM).
LCM is a registered commodity pool operator and commodity trading advisor.
Kim is registered as an associated person of LCM and is the sole principal of LCM.
The notice, filed on 24 July 2012, alleges that Kim and LCM are subject to statutory disqualification from CFTC registration based on a default judgment and permanent injunction entered by the US District Court for the Southern District of New York on 15 April 2011.
That injunction prohibits the defendants from committing further fraud, among other violations. Additionally, the default judgment includes findings that Kim fraudulently misappropriated at least USD2m of pool participant funds, fraudulently solicited prospective pool participants, and made material false statements to pool participants.
In the default judgment order, Kim and LCM were held liable for fraud in connection with operating a Ponzi scheme. The court also ordered that Kim and LCM pay USD3,129,161 in restitution to victims of the fraud and a USD9,387,483 civil monetary penalty.
The registration revocation action is further based on Kim’s and LCM’s multiple felony convictions in state criminal actions arising out of the operation of the Ponzi scheme and a federal criminal action against Kim for making a false statement in a passport application.
Kim and LCM each entered guilty pleas in connection with the various criminal charges against them. Kim was sentenced to federal and state prison terms totalling more than 16 years.
- By Category
- News from other sites
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Luxembourg Private Equity Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
Latest Special Report
- By Location