PAAM official involved in investigations since 2001
Thomas Gilmartin, the Man Financial broker named in the
ongoing fraud case involving the firm and Philadelphia
Alternative Asset Management (PAAM) (see FO Week Vol
10 No 39), has been suspended. It has also emerged that Paul
Eustace, the PAAM official involved in the alleged fraud, has
been under investigation by various regulatory bodies since as
early as 2001.
National Futures Association and Commodity Futures Trading
Commission (CFTC), which filed the original complaint against
PAAM, have both held previous investigations into Eustace's
CFTC has alleged the fraud dated back to 2001, when Eustace
first raised millions of dollars from clients for a fund called
Option Capital Fund. According to CFTC allegations, Eustace
issued false account statements that showed Option Capital had
been increasing in value from 2001 to May 2005. In fact, CFTC
alleged, the only known commodity accounts in the name of
Option Capital were closed in 2003 and overall lost over
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