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.
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