- Charges against Kevin Whylie, Matthew Zecchini, hedge fund, Algointeractive.
- Defendants charged with fraudulent solicitation and misappropriation of funds.
- Made false claims in solicitations, to current and prospective pool participants.
- Misrepresented experience and that all or most of participants’ funds would be
invested in, among other things, futures contracts, for the participants’ benefit.
- Defendants made and issued false documents on monthly account statements.
- Only fraction of funds solicited, were ever deposited in futures trading account.
- $59.4k has been returned to participants including via early Ponzi repayments.
- Orders find that the commodity pool was not operated as separate legal entity.
- Whylie will pay a $100k civil monetary penalty, and the default order requires
Zecchini and Algointeractive to pay, jointly and severally, a $721k civil penalty.
- $240k restitution to participants and permanent trading and registration bans.