Hedge Fund News From HedgeCo.Net


Hedge Fund Charged With Manipulating Futures Contract Prices

CFTC-300x200New York (HedgeCo.Net)  –  Federal Judge Analisa Torres has rejected arguments put forward by a hedge fund-like firm and cleared the way for a lawsuit filed by the FTC in New York, Reuters reports.

The CFTC claims that Donald R. Wilson and his company, DRW Investments, profited by at least $20 million, while their trading counterparties suffered losses of an equal amount.

“Traders cannot engage in manipulative acts to affect the price of futures contracts to achieve their desired profits, regardless of the so-called motive.” Gretchen L. Lowe, the CFTC’s Acting Director of Enforcement, said, “Today’s action demonstrates that the Commission will vigorously prosecute such cases to protect the integrity of the markets.”

According to the Complaint, Wilson and DRW allegedly caused and profited from artificial prices on the Three-Month Contract over a period of at least 118 trading days. Because Wilson and DRW allegedly caused artificial prices in multiple maturities of the Three-Month Contract each day, the manipulative scheme allegedly affected the prices of over 1,000 futures contracts.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

Related Posts Plugin for WordPress, Blogger...
This entry was posted in Hedge Fund Fraud, HedgeCo News. Bookmark the permalink.

Leave a Reply