The Commodities Futures Trading Commission (CFTC) filed a lawsuit against two California firms, TOTE Fund LLC (TOTE) and MJS Capital Management LLC (MJS), and their principal Michael J. Siegel for misappropriating funds in connection with two commodity pools.
According to the CFTC’s suit, between 2007 and 2010 Siegle collected nearly $1.4 million from about a dozen investors in the two commodity pools, Monarch Futures Fund LLC and the QEP Futures Fund LLC. Allegedly, Siegle transferred approximately $511,589 to his personal accounts, credit account, and one other person when he was only entitled to $319,909. As such, the complaint alleges that Seigle misappropriated approximately $191,000.
According to the The Star Ledger at NJ.com, Siegle disclosed that his fund firms would earn an incentive fee of 35% for all new net profits generated in addition to management and administrative fees. However, the funds lost money in 2009 and yet Siegal allegedly continued to pay himself incentive fees and use funds for unrelated expenses.
The foregoing information, which is publicly available on CFTC’s website, has been provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. For a free consultation with a securities attorney, please contact the securities fraud attorneys of The White Law Group at 312-238-9650.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.Tags: CFTC fraud lawyer, CFTC lawsuit, Michael J. Siegel charges, Michael J. Siegel investigation, Michael J. Siegel investments, Michael J. Siegel lawsuit, Monarch Futures Fund lawsuit, Monarch Futures Fund losses, QEP Futures Fund lawsuit, QEP Futures Fund losses, securities fraud attorney Last modified: July 17, 2015