Hedge Fund Exec Denied Witness Sanctions In Fraud Suit

Law360, New York (May 25, 2012, 6:55 PM EDT) -- A California federal judge on Friday denied former Paron Capital Management LLC partner James Crombie’s request for sanctions against a witness who allegedly misbehaved in a deposition in a suit alleging Crombie lied in a National Futures Association audit.

The U.S. Commodity Futures Trading Commission has accused Crombie of covering up his accounting fraud by deceiving the NFA in its audit.

Crombie had asked the court to sanction nonparty Mark Steele, a man who made a loan to Crombie that is tied up in the CFTC’s...
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