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Alternative Market Briefing

AlphaMetrix denies fraud charges

Monday, January 20, 2014

Komfie Manalo, Opalesque Asia:

Chicago-based investment fund administrator and commodity trading adviser AlphaMetrix Group has denied fraud charges brought against it by the Commodity Futures Trading Commission in a botched plan to pay $2.8m to customers in rebates.

AlphaMetrix told the court that the CFTC was responsible for preventing the firm "from effectuating its repayment of all of the rebates owed, the complete liquidation of the Funds at 100 percent of their value and the full repayment," reported Chicago Business.

In a lawsuit the CFTC filed in November against AlphaMetrix, the agency accused the firm of allegedly misappropriating $2.8m that should have been paid to its clients.

However, AlphaMetrix defended itself and said that CFTC lawsuit and its move to appoint a corporate monitor to oversee the dismantling of AlphaMetrix actually prevented them from returning some $600,000 to clients. It added that they already settled the $2.2m it owed to one client after it signed a promissory note in October that both sides have agreed on.

AlphaMetrix told a court in Chicago, "While AlphaMetrix was entitled to be paid (and in fact was paid) the fees subject to the side letters, AlphaMetrix agreed in certain side letters to rebate certain fees to the pool participant by reinvesting such fees back into the Funds at a later ......................

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