Judge Threatens Sanctions For Ex-Paron Exec In CFTC Suit

Law360, New York (August 14, 2012, 1:08 PM EDT) -- A California federal judge said Monday he may sanction former Paron Capital Management LLC partner James Crombie for improperly seeking contempt and obstruction of justice sanctions against the U.S. Commodity Futures Trading Commission, which sued Crombie over alleged accounting fraud.

The CFTC sued Paron and Crombie in September, claiming he lied in a National Futures Association audit to cover up his firm’s use of fraudulent promotion materials to solicit clients. Crombie filed three motions for sanctions against the CFTC in August, contending the commission failed to...
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