Hedge Fund, CEO To Pay $2.4M To Settle CFTC Fraud Suit

Law360, New York (August 27, 2012, 9:38 PM EDT) -- Hedge fund operator Cornerstone Capital Management LLC and its former CEO agreed Monday to fork over more than $2.4 million to settle a U.S. Commodity Futures Trading Commission fraud suit in Georgia federal court alleging the group misled investors about their fund's value. 

In a consent order signed Monday by the CFTC, Cornerstone agreed to pay about $1 million and its former CEO, Joseph Profit Jr. agreed to pay $1.4 million, putting to rest a CFTC suit that alleged the firm boasted between $20 million and...
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