SEC’s Madoff Failure Cited in Lawsuit Just a quick note that the New York Times has written an article about two Madoff investors who are suing the SEC for not doing its job.  It will likely be a tough case for the investors/plaintiffs to prevail upon because of the doctrine [...]

SEC’s Madoff Investigation = Stunning Failure As has been widely reported, the Inspector General has released a 450 page report on the SEC’s stunning failure to uncover the Bernard Madoff Ponzi scheme.  Below I have republished some of the more interesting items from the summary portion of the report (emphasis [...]

Hedge Fund Due Diligence Firm Releases White Paper We’ve published a number of thoughtful pieces on this blog from Chris Addy, president and CEO of Castle Hall Alternatives (see, for example, article on Hedge Fund Auditors).  Today we are publishing a press release which announces a new white paper from [...]

Proposes Amendments to Compliance Rule 2-45 The National Futures Association (NFA) proposed new amendments to Compliance Rule 2-45 regarding prohibition of loans by pools to commodity pool operators and related parties.  The amendment states that no Member CPO may permit a commodity pool to use any means to make a [...]

This week alone the Commodities Futures Trading Commission issued 5 separate press releases regarding various frauds and ponzi schemes.   As we have noted many times before investors should make sure they conduct adequate due diligence into their managers.  It also goes without saying, but managers should not engage in fraudulent [...]

For Immediate Release For more information contact: Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org NFA takes an emergency enforcement action against GlobeFX Club, Inc. March 24, Chicago – National Futures Association (NFA) announced today that it has taken an emergency enforcement action against GlobeFX Club, Inc. (GlobeFX [...]

This past week and a half has proven to be a busy time for the CFTC’s enforcement divisions as a number of actions have been released to the public.  The four actions below showcase the unlawful and unsavory behavior of four groups.  Specifically, two of the actions below provide details [...]

In two separate actions the NFA has effectively shut down two separate Commodity Pool Operators who were operating in the Northeast.  The press releases are reprinted below. **** For Immediate Release NFA takes emergency enforcement action against New York commodity pool operator February 9, Chicago – National Futures Association (NFA) [...]

SEC Charges Missing Trader for Defrauding Investors at Sarasota-Based Hedge Funds FOR IMMEDIATE RELEASE 2009-10 Washington, D.C., Jan. 21, 2009 — The Securities and Exchange Commission today charged Arthur Nadel of Sarasota, Fla., with fraud in connection with six hedge funds for which he acted as the principal investment advisor. [...]

The hedge fund industry has been shaken by volatile financial markets and the Madoff investment scandal of December 2008.  While the hedge fund and investment management industries are changing because of these twin forces, many people are looking back to try to piece together what has happened and more importantly [...]