When it comes to fund management there are many names out there, but the latest announcement from the US CFTC shows that they don’t really matter for investors. US courts have ordered a company called Wall Street Pirate Management and its owner Gary Creagh to pay a hefty fine for misleading the National Futures Association (NFA).
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The firm and its owner will need to indemnify US authorities $125,000 for violating securities laws. The civil monetary penalty is a result of an investigation that started in 2015. The two parties have been charged by the CFTC with failure to disclose the activity of a commodity pool that was operated between December 2011 and September 2013.
Creagh and Wall Street Pirate Management were found to have violated a series of Commodities Exchange Act rules. The company has been engaged in trading commodity futures and provided misleading information to the NFA.
In addition to the fine, the defendant is barred from trading for himself or any other person for life.
The misdemeanor occurred during an audit by the NFA while the company was registered with the CFTC. False statements and the concealing of information were identified on numerous occasions while the perpetrator was claiming that Wall Street Pirate was inactive.
While misleading US financial regulatory authorities, the company was actually running a commodity pool without maintaining adequate records. The pool participants were not being provided with account statements and privacy notices.
Commenting on the decision of the court, the Director of the CFTC’s Division of Enforcement, James McDonald, stated: “We must be confident that the NFA is getting true and accurate information. This action, together with the Court's order, shows that lies to the NFA – just like lies to the Commission – will not be tolerated.”
