

CFTC, arguably the most notorious of all financial regulators, recently acted against two commodity pool operators. LJM Partners and LJM Funds Management Ltd were working collectively as LJM, were charged with a commodity pool fraud.
The collective also releases false statements about losses, which was frowned upon by the CFTC. The firm also released misleading statements. The CFTC also noted that loose risk management practices were used, for which the company was charged.
Two main individuals were charged, namely Anthony J. Caine -chairman on LJM-, and Chief Portfolio Manager Anish Parvataneni.
The US regulator finished charging the Chief Risk Officer of LJM, Arjuna Ariathurai, with a civil monetary penalty of $150 000 plus prejudgment interest of $14 111. Arjuna Ariathurai also received a cease and desist order, barring him from registering with the CFTC for three years.
Moreover, the CFTC holds the CEO of LJM accountable for “make false or misleading statements about the risks of trading, or fail to diligently supervise their employees or agents’ activities“.
Both LJM Partners and LJM Funds Management Ltd operated a couple of commodity pools, client accounts, and a mutual fund between the years 2016 and 2018. The firms had more than $1 billion in assets at their highest. However, in 2018 they closed down after the VIX index jumped by 20 points.