District Judge J. Paul Oetken

 

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Creagh managed ‘commodity pool operator’ (CPO) Wall Street Pirate Mgmt. LLC (WSPM). Both were members of the National Futures Ass’n, a self-regulatory organization registered with the U.S. Commodity Futures Trading Comm’n (CFTC). WSPM, via Creagh, willfully made multiple false statements to the NFA that Wall Street Pirate Fund LP (WSPF), a commodity pool operated by WSPM, was not active during calendar year 2012. WSPM, via Creagh, failed to maintain required books and records or provide account statements and privacy notices to WSPF pool participants. An April 25, 2016, consent order settled all liability claims against Creagh and WSPM, and enjoined their future violation of the Commodity Exchange Act. District court permanently barred Creagh and WSPM from trading commodities, and required that they pay, jointly and severally, a $125,000 civil monetary penalty to the CFTC. Although the CFTC had sought $500,000 penalty for the four counts against Creagh and WSPM, the court concluded that a penalty near the maximum allowable for each of Creagh’s four counts—apparently stemming from Creagh’s limited understanding of his legal obligations as a manager of a commodity pool—would be excessive.