For Release: September 1, 2009
CFTC Files Action to Revoke the Registrations of Abbas A. Shah, Linuxor Asset Management and Linuxor Capital Management
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed an action to permanently revoke the registrations of Linuxor Asset Management LLC (LAM), a New York-based Commodity Pool Operator, Linuxor Capital Management LLC (LCM), a New York-based Commodity Trading Advisor, and Abbas A. Shah, a New York resident who is an Associated Person of LAM and principal of both LAM and LCM. The action is based primarily on a fraud judgment entered against LAM and Shah in federal court (see CFTC Press Release 5586-08, December 18, 2008).
The CFTC’s Notice of Intent to Revoke Registration, filed on September 1, 2009, alleges that Shah and LAM are subject to disqualification from registration based on a consent order of permanent injunction against them in the U.S. District Court for the Southern District of New York on December 17, 2008, that resolved federal fraud charges, CFTC v. Shah, et al. (Case No. 05-CV-8091 (LAK) (S.D.N.Y.)). The CFTC’s Notice also alleges that LCM is statutorily disqualified from registration because Shah is the principal and part-owner of LCM and Shah is disqualified from registration.
The federal district court’s consent order states that Shah and LAM made false representations to pool participants about the value of the pool, commingled pool participants’ funds, failed to distribute required quarterly reports and distributed an annual report late. In addition to prohibiting Shah and LAM from seeking registration with the CFTC in any capacity, the order requires them to pay a $200,000 civil monetary penalty.
The following CFTC Division of Enforcement staff were responsible for this action: W. Derek Shakabpa, Michael R. Berlowitz, David Acevedo, Judith Slowly, Lenel Hickson and Vincent A. McGonagle.
Last Updated: September 1, 2009