CFTC Socks N.Y. Hedge Fund Manager With Suit

Law360, New York (February 8, 2007, 12:00 AM EST) -- The U.S. Commodity Futures Trading Commission has hit a New York hedge fund manager with a lawsuit, alleging that he deliberately overstated the fund’s assets by tens of millions of dollars in order to defraud investors.

On Tuesday, the CFTC filed suit in an Atlanta district court against Joseph Profit II, the founder and chief executive of Cornerstone Capital Management.

The Commission has accused him of violating the Commodity Exchange Act’s anti-fraud provisions by asserting that the fund had between $20 and $60 million in assets...
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