NEW YORK, NY – Mark Evan Bloom, of Monmouth Beach, New Jersey, has been ordered to pay a $26 million civil penalty for defrauding investors through his commodity pool, North Hills LP. The ruling, entered by Judge John G. Koeltl of the U.S. District Court for the Southern District of New York on March 3, 2015, resolves a case brought by the U.S. Commodity Futures Trading Commission (CFTC).
The CFTC originally filed a complaint against Bloom and his firm, North Hills Management, LLC, in February 2009, alleging the operation of a fraudulent commodity pool and misappropriation of customer funds. The court found that Bloom and NHM misappropriated approximately $13 million from North Hills between 2002 and February 2009. Bloom used the stolen funds to finance a lavish lifestyle, including the purchase of a Manhattan apartment exceeding $5 million.
The order detailed that Bloom and NHM concealed the misappropriation and misled investors. They failed to disclose that participant assets were not invested as stated and issued false statements about the status of North Hills and investor interests. A prior Consent Order, entered on June 11, 2010, imposed a permanent injunction, along with bans on trading, solicitation, and registration against Bloom and NHM.
In a parallel criminal proceeding, Bloom pleaded guilty to charges similar to those in the CFTC’s complaint on July 30, 2009, and is currently awaiting sentencing. His plea agreement requires him to pay restitution to investors, the amount of which will be determined by the court. Consequently, the CFTC’s Supplemental Consent Order does not mandate additional restitution.
The CFTC acknowledged the assistance of the Office of the U.S. Attorney for the Southern District of New York and the Securities and Exchange Commission in the investigation.
Source: CFTC.gov
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