The most pointless $300m order ever

Nice try, but he doesn’t have it. And, unless somebody’s slipped up really badly somewhere, neither does Philadelphia Alternative Asset Management Co.

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Paul Eustace of Ontario, Canada, was ordered to pay more than $279 million in restitution and a $12 million civil penalty, based on an order that resolves a CFTC enforcement action against him for defrauding commodity pool participants in four pools that he managed.

The court also entered an order of default judgment against the commodity pool operator that Eustace controlled, the Philadelphia Alternative Asset Management Co. (PAAM), imposing permanent trading and registration bans, requiring payment of restitution of approximately $276 million, subject to offset by prior disbursements and payments by Eustace, and imposing an $8.8 million civil monetary penalty...blah blah blah.

PAAM’s receiver wheedled $1.3 million of actual money out of Eustace, and won another not-likely-to-be-paid-anytime-soon $625,000 order covering the costs of solving his various attempts at asset concealment and related skullduggery.

Hedge Fund Trader...Ordered to Pay
Commodity Futures Trading Commission press release
Aug. 19 2008

Earlier on NakedShorts

The crook is still in Canada
Aug. 8 2008