Tue, Oct 13, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
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 ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Bloomberg.com: Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  2. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From Mondaq.com: The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  3. Other Voices: Why fund boards must develop a response to cyber security and financial crime threats[more]

    This article was written by Carne, an international specialist in the provision of independent governance services and European management company solutions to the global asset management industry. A recent SEC action has highlighted how concerned regulators have become about data intru

  4. Hedge funds relatively resilient in Q3[more]

    Komfie Manalo, Opalesque Asia: Hedge funds fell in the third quarter as market conditions remain challenging, but still outperformed the S&P 500. The Lyxor Hedge Fund index was down 3.6% during Q3 while the S&P 500 fell 8.2%. According to Lyxor, "hedge funds were quite resilient in Q3. Falling en

  5. Hedge funds start Q4 on strong footing reversing the previous market downturn[more]

    Komfie Manalo, Opalesque Asia: Hedge funds started the fourth quarter on a strong footing, reversing the previous market downturn with the Lyxor Hedge Fund Index up 1.1% as of end Oct. 6 (-0.7% YTD). Event-driven outperformed, up 2.2% (-4.2% YTD), and CTAs underperformed (- 1.9%), extrapolatin