The Commodity Futures Trading Commission has filed an action to revoke the registration of Philadelphia Alternative Asset Management as a commodity pool operator after the company was conv
The Commodity Futures Trading Commission has filed an action to revoke the registration of Philadelphia Alternative Asset Management as a commodity pool operator after the company was convicted of fraud in August.
In a notice of intent to revoke registration filed on September 24, the CFTC argues that Philadelphia Alternative Asset Management is subject to statutory disqualification as a result of a default judgment entered against it in the US District Court for the Eastern District of Pennsylvania on August 13.
The court order found that between the autumn of 2002 and May 2005, the company fraudulently solicited more than USD280m from individuals to participate in a commodity pool that traded commodity futures and options.
The order also found that Philadelphia Alternative Asset Management issued fraudulent trading account statements, misrepresented its trading record to prospective participants, and misappropriated pool funds. The company was ordered to pay restitution of some USD276m and a USD8.8m civil penalty.
