December 14, 2010
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a complaint alleging registration violations against Vincent Patrick McCrudden of Dix Hills, N.Y., Alnbri Management, LLC (Alnbri) and Managed Accounts Asset Management, LLC (MAAM). McCrudden was the owner and sole officer of New York-based Alnbri and MAAN. MAAM was dissolved in April 2009.
The CFTC complaint, filed in the U.S. District Court for the Eastern District of New York, charges McCrudden with failure to register with the CFTC as an Associated Person (AP) of a Commodity Pool Operator (CPO), acting as a CPO without being registered and failing to give notice of an inaccurate claimed exemption from registration filed with the CFTC.
Specifically, from May 8, 2008, to September 30, 2008, McCrudden allegedly acted as an AP of MAAM and Alnbri, without being registered, while soliciting customers to participate in the Hybrid Fund II commodity pool. Alnbri is the sole general partner of Hybrid Fund II. MAAM and Alnbri are charged with acting as unregistered CPOs and failing to meet registration exemption requirements during the relevant period. McCrudden controlled Hybrid Fund II’s operations, according to the fund’s Private Placement Memoranda of March 1, 2008, and December 1, 2008.
On or about December 12, 2005, after the National Futures Association disqualified MAAM from registration as a CPO, McCrudden filed a notice of exemption from registration for MAAM’s operation of the Hybrid Fund II, according to the complaint. The Hybrid Fund II, however, failed required tests to qualify for a CPO exemption, and McCrudden never registered MAAM as a CPO with the CFTC, according to the complaint.
In March 2008, McCrudden filed an amendment with the Delaware Secretary of State replacing MAAM with Alnbri as an exempt CPO of the Hybrid Fund II during the relevant period, according to the complaint. However, Alnbri allegedly never registered with the CFTC as a CPO or filed an exemption. Moreover, at no time was McCrudden registered as an AP of MAAM or Alnbri, despite soliciting participants to invest in the Hybrid Fund II and supervising Hybrid Fund II employees, the complaint alleges.
In its continuing litigation, the CFTC seeks civil monetary penalties, permanent registration and exemption bans against the defendants, restrictions on the defendants’ ability to act as principals providing commodity trading advice and permanent injunctions prohibiting trading and further violations of the federal commodities laws.
The CFTC Division of Enforcement staff responsible for this case are Timothy J. Mulreany, Michael Amakor, Saadeh A. Al-Jurf, Sophia Siddiqui, Joseph Rosenberg, Paul Hayeck and Joan Manley.
Last Updated: December 14, 2010