The US Commodity Futures Trading Commission (CFTC) has filed a Notice of Intent (Notice) to revoke the registration of Prestige Capital Advisors of Charlotte, North Carolina, as a Commodity Trading Advisor (CTA).
The CFTC Notice alleges that Prestige is subject to statutory disqualification from CFTC registration based on an Order of default judgment and permanent injunction entered against Prestige in the US District Court for the Western District of North Carolina on January 25, 2013.
The Order finds that Prestige fraudulently solicited and accepted more than US$4.7 million from multiple pool participants for investment in one or more commodity pools that traded among other things, commodities and futures contracts.
The Order also finds that Prestige misappropriated pool participant funds, posted false trading returns on a website called BarclayHedge (where fund managers could post unverified historical returns for prospective clients to view), sent false trading results to at least one Prestige pool participant, and issued false account statements. As a result, Prestige was ordered to pay approximately US$6.9 million in civil monetary penalties and restitution of over US$4.1 million.