UNITED STATES COMMODITY FUTURES TRADING COMMISSION REVOKES REGISTRATION OF PALOMINO CAPITAL MANAGEMENT, A COMMODITY POOL OPERATOR IN PITTSBURGH, PENNSYLVANIA
WASHINGTON, D.C. - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it simultaneously filed and settled an action revoking the registration of Palomino Capital Management (Palomino) of Pittsburgh, Pennsylvania, a registered commodity pool operator (CPO).
Palomino, which had been registered with the CFTC as a CPO since September 24, 2003, is subject to revocation of its registration based on an April 5, 2005, Commission consent order against Palomino’s sole principal, Jeff Thomas Allen, also of Pittsburgh.
The April 5 consent order against Allen made findings that Allen had engaged in unauthorized trading in violation of the anti-fraud provisions of the Commodity Exchange Act. Based on these findings, the April 5 order, among other sanctions, revoked Allen’s registration with the Commission as an associated person of Palomino. The CFTC’s July 14, 2005, order finds that the revocation of the registration of Allen, as a principal of Palomino, constitutes cause for the statutory disqualification of Palomino, and revokes Palomino’s registration.
In consenting to the order, Palomino Capital neither admitted nor denied the charges or the findings in the order.
The following CFTC Division of Enforcement staff are responsible for this case: Erin E. Vespe and Gretchen Lowe.
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The CFTC encourages members of the public to bring to our attention any suspicious activities involving futures or commodity options, including matters involving foreign currency (forex) investments or suspicious internet websites.
You may contact the CFTC at 1-866-FON-CFTC (1-866-366-2382) visit us at our Customer Protection web page: (www.cftc.gov/cftc/cftccustomer.htm), or fill out our Internet Report Form identifying your concerns (www.cftc.gov/enf/enfform.htm).
In addition, the CFTC publishes a series of Consumer Advisories at http://www.cftc.gov/cftc/cftccustomer.htm#advisory alerting the public to warning signs of possible fraudulent activity and offering precautions individuals should take before committing funds.