Chicago-based commodity pool operators LJM Partners Ltd and LJM Management Ltd, along with former executives Anthony J. Caine and Anish Parvataneni, have been penalized by the U.S. District Court for the Northern District of Illinois for commodities fraud, the Commodity Futures Trading Commission (CFTC) announced on July 1, 2025.
The court entered a consent order imposing permanent injunctive relief, civil monetary penalties, and disgorgement against the defendants. Caine, former chairman, owner, and registered associated person of LJM, will pay a $500,000 penalty and is jointly responsible with LJM for $4,624,271 in disgorgement, including pre-judgment interest. Parvataneni, former chief portfolio manager, faces a $200,000 penalty and $721,093 in disgorgement, also with pre-judgment interest.
In addition to the financial penalties, Caine and Parvataneni are both banned from registering with the CFTC for three and one years, respectively. They are also prohibited from managing or advising the trading for third parties for the same durations, with limited exceptions for family members.
The case stems from a CFTC complaint filed in May 2021 alleging violations of the Commodity Exchange Act and CFTC regulations. The CFTC previously secured penalties against former LJM Chief Risk Officer Arjuna Ariathurai for failing to disclose risk management information to investors, resulting in $247,444 in penalties and disgorgement.
The SEC also brought related charges against the defendants, which have now been resolved concurrently. The CFTC acknowledged the cooperation of the SEC, National Futures Association, and Financial Industry Regulatory Authority throughout the investigation.
The CFTC urges investors to verify a company’s registration status through the NFA BASIC system before investing and provides a toll-free hotline (866-FON-CFTC) and online resources for reporting suspicious activity. Whistleblowers may be eligible for financial rewards.
Source: CFTC.gov
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