The US Commodity Futures Trading Commission has filed an action to permanently revoke the registrations of Linuxor Asset Management, a New York-based commodity pool operator, Linuxor CaPARA_BREAK_SENTINEL_9f8e7d6c The US Commodity Futures Trading Commission has filed an action to permanently revoke the registrations of Linuxor Asset Management, a New York-based commodity pool operator, Linuxor Capital Management, a New York-based commodity trading adviser, 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. In addition to prohibiting Shah and LAM from seeking registration with the CFTC in any capacity, the order requires them to pay a USD200,000 civil monetary penalty.
The CFTC's notice alleges that Shah and LAM are subject to disqualification from registration based on a consent order of permanent injunction against them in the US District Court for the Southern District of New York on 17 December 2008, which resolved federal fraud charges. 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.
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