Former CEO of investment firm Systematic Alpha Management LLC (SAM), Peter Kambolin, has admitted to participating in a fraudulent scheme known as “cherry-picking.” This practice involved allocating profitable and unprofitable trades in a way that benefited Kambolin’s personal accounts while causing losses for investors. Kambolin also misled clients by claiming that SAM’s trading strategies focused on crypto futures and foreign exchange contracts, when in reality, a significant portion of the transactions involved equity index futures contracts. The US Department of Justice (DOJ) stated that Kambolin defrauded clients within and outside the United States, preventing them from making profitable trades. The Commodities Futures Trading Commission (CFTC) previously filed a complaint against SAM and Kambolin, alleging unfair allocation of trades and fraudulent behavior. The complaint revealed that Kambolin and SAM made over $1.5 million in trading profits while clients suffered losses of the same amount. Kambolin used the proceeds from the scheme to fund his lifestyle and transferred funds to bank accounts controlled by a co-conspirator. Kambolin has pleaded guilty to conspiracy to commit commodities fraud and may face up to five years in prison. A sentencing date has not yet been set.

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Information	Details
Geography	North America
Countries	🇧🇾 🇩🇴 🇺🇸
Sentiment	negative
Relevance Score	1
People	Peter Kambolin
Companies	Systematic Alpha Management LLC, Commodities Futures Trading Commission (CFTC), US Department of Justice
Currencies	None
Securities	None