The Commodity Futures TradingCommission in March filed a complaint in U.S. District Court against Virginia-based Financial Investment Inc. (FII). The CFTC civil complaint alleges FII repeatedly failed to distribute to pool participants and to file with the National Futures Association the required yearly annual report for its Financial Investments L.P. commodity pool from 2004 to 2006.
Craig Kendall, the owner of FII, is also the owner of the Financial Commodity Investments, a separate entity profiled in our March Top Traders of 2009 feature.
Kendall acknowledged that the CFTC field the claim for late filing but added, “We distributed our annual report to our clients on a timely basis.” The FII commodity pool closed in 2008. Kendall says that many of his pool clients chose to move funds from the pool into his CTA after the pool closed. “Several people have inquired about the case but no [customers] have left,” Kendall added. The CFTC seeks a civil monetary penalty and a permanent injunction against further violations.
FII and FCI have no NFA regulatory actions filed against it.
Changes at Campbell & Co.
In March, Campbell & Company announced that Chief Investment Officer Kevin Heerdt is leaving the firm to pursue other interests.
Management of the research and investment process at Campbell will now be conducted by an investment committee chaired by Campbell’s Vice Chairman Bruce Cleland. The committee will also include Research Director Xiaohua Hu and COO Will Andrews.
Terri Becks will continue as president and CEO.
CFTC charges Nolan
On March 2, the CFTC issued a preliminary injunction against Jay Nolan, a former Chicago floor broker, and his Northfield, Ill.-based company Lodge Capital Group. In January, the agency charged Nolan with misappropriation and fraud in operating a $3.9 million commodity pool. On Nov. 24, 2009, the FBI and the U.S. Attorney’s Office filed a criminal complaint against Nolan.