The former CEO of a Miami-based investment firm has pleaded guilty to a conspiracy to commit commodity fraud involving cryptocurrency futures and now faces up to five years in prison.
On October 12th statementThe US Department of Justice said Peter Campolin, former CEO of Systematic Alpha Management (SAM) LLC, ran a “cherry pick” scheme in which he marketed his company as offering algorithmic trading strategies involving futures contracts, including cryptocurrencies and commodities. .
However, Kampolin misrepresented to investors that his fund included trading in cryptocurrency futures and forex futures, when in fact approximately half of Kampolin’s trading in each group involved stock index futures.
CEO pleads guilty in transnational scheme involving foreign exchange futures and cryptocurrencieshttps://t.co/aiafUgfRS3
– Criminal Division (@DOJCrimDiv) October 12, 2023
“In doing so, Campolin defrauded investors located in the United States and abroad, by, among other things, depriving them of lucrative trades,” prosecutors wrote.
Cherry picking is a fraudulent securities trading practice in which a person executes trades without assigning those trades to a specific trading account until the individual determines whether or not the trade has become profitable or incurred losses.
According to the Department of Justice, Campolin defrauded investors both in the United States and abroad by denying them lucrative deals and then using the proceeds to finance his personal expenses including the rent of a beachfront apartment.
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The proceeds of his scheme were transferred to foreign bank accounts controlled by a co-conspirator in Belarus and Dominica.
“Yesterday’s plea recognizes the importance of holding the defendant accountable for his actions in misleading and defrauding investors through a selective scheme, and using the proceeds of the scheme to fund his personal lifestyle,” Assistant Inspector General for Investigations Shimon Richmond said.
After pleading guilty, Kampolin now faces a maximum sentence of five years in prison. His sentencing hearing will be held at an unknown date in the future.
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