Chicago, IL – November 6, 2013 – The U.S. Commodity Futures Trading Commission (CFTC) has filed charges against Pavel Pogrebnyak, the principal behind AlphaMetrix, LLC, a Chicago-based commodity pool operator and trading advisor, alleging fund misappropriation and the distribution of misleading account statements. A federal judge has issued a restraining order freezing AlphaMetrix’s assets.
According to the CFTC complaint filed November 4, 2013, in the U.S. District Court for the Northern District of Illinois, AlphaMetrix managed approximately 90 commodity pools with roughly $700 million in assets as of August 31, 2013. The agency alleges that AlphaMetrix failed to reinvest approximately $2.8 million in fee rebates owed to pool participants between January 1 and October 31, 2013. Instead, these funds were allegedly transferred to AlphaMetrix Group, LLC, the parent company, with no legitimate claim to the money.
The CFTC contends that AlphaMetrix simultaneously sent account statements to participants that falsely inflated the value of their investments by including the un-reinvested rebate funds in the net asset value calculations. This created a misleading picture of the true value of participant holdings.
The CFTC is seeking preliminary and permanent injunctions against AlphaMetrix, barring them from further violations of the Commodity Exchange Act. Additionally, the agency is pursuing restitution, disgorgement of ill-gotten gains, and a civil monetary penalty. The CFTC also aims to compel AlphaMetrix Group, LLC to disgorge the funds it improperly received. The amount of the penalty and restitution will be determined by the court.
The case is being prosecuted by Stephanie Reinhart, David Terrell, Joseph Patrick, Scott Williamson, and Rosemary Hollinger of the CFTC’s Division of Enforcement, with assistance from the Division of Swaps and Intermediary Oversight and the National Futures Association.
Source: CFTC.gov
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