Some $1.5 million in assets from the Texas-based managed futures fund Pippin Investments were ordered frozen by the U.S. Commodities Futures Trading Commission this week.
The CFTC alleges that Pippin Investments and its principal Stuart Pippin defrauded investors by transferring $1.5 million of the energy fund's $1.9 million in assets to his personal bank account. The regulatory group also filed an injunction against Stuart for running an energy-focused commodity pool that was not properly registered with the CFTC.
Regulators say only a single trade was made by Pippin, which lost $90, and that investors were sent bogus performance reports. CFTC