Hedge Funds

CFTC files enforcement action against Chicago manager

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The Commodity Futures Trading Commission has filed a $2.4 million enforcement action against Chicago hedge fund manager Edward Velasquez, claiming the he defrauded at least 43 investors in his V-Tek Capital and V-Tek Trading Group companies.

Velasquez allegedly misrepresented the risks and profit potential of trading commodity futures. The CFTC claims Velasquez touted V-Tek as a hedge fund and promoted investments in managed commodity futures trading accounts on a Web site that featured a banner declaring V-Tek to be "rated in the top 1% of capital management firms worldwide."

Velasquez also faked his track record, claiming on his Web site