For Release: September 24, 2008
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) has filed an action to revoke the registration of Philadelphia Alternative Asset Management Company, LLC (PAAM) as a Commodity Pool Operator (CPO). The action is based, in part, on fraud judgments entered against PAAM.
The CFTC, in a Notice of Intent to Revoke Registration filed on September 24, 2008, alleges that PAAM is subject to statutory disqualification of its registration as a CPO based on a default judgment entered against PAAM in the U.S. District Court for the Eastern District of Pennsylvania on August 13, 2008 (see CFTC Press Release 5531-08, August 19, 2008).
The District Court’s August 13, 2008 order found that PAAM, from at least the fall of 2002 through at least May 2005, fraudulently solicited more than $280 million from individuals to participate in a commodity pool that traded commodity futures and options. The order also found that PAAM issued fraudulent trading account statements, misrepresented its trading record to prospective participants, and misappropriated pool funds. PAAM was ordered to pay restitution of approximately $276 million and an $8.8 million civil monetary penalty.
The following CFTC Division of Enforcement staff members were responsible for this case: Glenn I. Chernigoff, Timothy M. Kirby, Gretchen L. Lowe, and Vincent A. McGonagle.
Last Updated: September 24, 2008