Chicago, IL – On May 1, 2007, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint against Anthony A. Demasi and his firm, Tsunami Capital, LLC, alleging a fraudulent scheme involving a commodity pool known as Tsunami Lakeshore. The case, filed in the U.S. District Court for the Northern District of Illinois, accuses Demasi of misappropriating at least $300,000 from at least three investors between December 2004 and April 2007.
U.S. District Judge Robert W. Gettleman issued a restraining order on April 26, 2007, freezing the assets of Demasi and Tsunami Capital and prohibiting them from destroying records or obstructing access by CFTC staff. The CFTC alleges that Demasi fraudulently solicited investments for Tsunami Lakeshore, providing at least one investor with a fabricated trading history showing two years of profits when, in reality, the pool lacked an active account for much of that period and experienced losses when it was operational.
The complaint further details that Demasi and Tsunami Capital distributed false statements to investors throughout 2005 and early 2006, claiming substantial profits. However, the Tsunami Lakeshore account was closed in January 2005, and other accounts managed by Tsunami Capital either lost money or underperformed the figures presented in five out of six quarterly statements provided to investors.
The CFTC is seeking orders to compel Demasi and Tsunami Capital to provide full access to their books and records, conduct a full accounting of investor funds, and issue both preliminary and permanent injunctions. The agency also requests the return of any ill-gotten gains, restitution for defrauded investors, and monetary penalties. The case is being pursued by Susan Gradman, Bill Heitner, Cynthia Cannon, Scott Williamson, Rosemary Hollinger, and Richard Wagner of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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