CFTC Seal
Commodity Futures Trading Commission
Office of External Affairs (202) 418-5091
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581

Release: 5115-05
For Release: September 20, 2005

U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES NEW YORK HEDGE FUND, LINUXOR ASSET MANAGEMENT, AND ITS PRINCIPAL, ABBAS SHAH, WITH FRAUD

CFTC Alleges that Linuxor and Shah Defrauded Fund Participants by Failing to Send Them Required Periodic Statements and by Misrepresenting the Value of the Fund

Defendants Also Charged With Failure to Send Timely Required Annual Reports to the National Futures Association

WASHINGTON, D.C. – The U. S. Commodity Futures Trading Commission announced today the filing of an enforcement action in the United States District Court for the Southern District of New York, alleging that Linuxor Asset Management (LAM) and Abbas Shah defrauded hedge fund participants in the Linuxor Global Macro Fund.  Shah managed the hedge fund and acted as its trading advisor.

Specifically, the CFTC complaint alleges that Shah, the principal and owner of LAM, engaged in a fraud in which he sent at least two misleading emails to fund participants, one in August 2003 and another in January 2004, materially misrepresenting the net asset value of the fund and his success in recovering prior trading losses.  As part of the misconduct, the complaint also alleges that Shah and LAM failed to send clients requisite quarterly reports and a timely annual report.

The complaint alleges that Defendants also failed to meet the requirement to send timely annual reports to the National Futures Association.

The CFTC is seeking a permanent injunction against Shah and LAM, restitution to defrauded participants, civil monetary penalties and a permanent prohibition from trading commodity futures.

The CFTC appreciates the valuable assistance of the National Futures Association in preparing this action.
The following Division of Enforcement staff members are responsible for this case:  W. Derek Shakabpa, David Acevedo, Lenel Hickson, Jr., Stephen J. Obie and Richard Wagner.

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Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
Office of External Affairs

Staff Contact
Richard Wagner
Deputy Director
CFTC Division of Enforcement
(202) 418-5409

Related Document
Complaint