New York, NY – Haena Park and her affiliated companies, Phaetra Capital GP LLC, Phaetra Capital Management LP, and Argenta Group LLC, have been ordered to pay $22,917,551 in restitution to defrauded investors and a $100,000 civil penalty, the Commodity Futures Trading Commission (CFTC) announced today.
The ruling, issued December 3, 2018 by Judge Valerie E. Caproni of the U.S. District Court for the Southern District of New York, concludes CFTC’s litigation stemming from a complaint filed on June 2, 2016. The charges centered around fraudulent solicitation and misappropriation of funds from investors.
According to court findings, from January 2010 through June 2016, Park and her companies fraudulently solicited at least $23 million from approximately 50 individuals to participate in a commodity pool. Park allegedly made false claims regarding her trading expertise and the profitability of her trades to attract investors.
The court found that Park and her firms fabricated account statements containing false trading data and profits to conceal losses and the misappropriation of funds. They also failed to maintain the commodity pool as a separate legal entity, commingled funds, and used improper naming conventions for accounts. Furthermore, Park allegedly deceived an investment firm into allowing her to manage their account while acting as an agent of Argenta Capital LLC.
Yul Kaseman, a co-defendant in the case, was previously found to have made false statements to the National Futures Association (NFA) and was penalized with a $75,000 civil monetary penalty and a five-year trading and registration ban in a separate consent order issued April 23, 2018.
The CFTC cautioned that victims may not fully recover their losses, as wrongdoers may lack sufficient assets. The agency stated it will continue to pursue accountability in such cases. The NFA, the U.S. Attorney’s Office for the Southern District of New York, the U.S. Department of Homeland Security, and the Securities and Exchange Commission assisted in the investigation.
Source: CFTC.gov
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