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Stark & Stark Shareholder Comments on Feeder Funds Ruling

Stark & Stark Securities group Shareholder, Bill Singer, was quoted in the July 16, 2009 New Jersey Law Journal article, Feeder Funds Held Subject to Commodity Pool Regulation. The article discusses Monday's U.S. 3rd Circuit Court of Appeals ruling which states, 'A fund that solicits money from investors for trading in commodity futures is subject to registration and regulation as a commodity pool operator, even if it does no trading itself.'

The ruling comes shortly after the sentencing of Bernard Madoff who stole over $50 billion from investors during his decade-long Ponzi scheme and could now have repercussions in similar suits against other 'feeder funds.'

Mr. Singer states that this case could help to lay the foundation for future actions against feeder funds, even those which were involved in the Madoff scam. Mr. Singer also states that the ruling brings to light the need for Congress to update commodities and securities laws in order to keep up with the changing markets. 

You can read the full article here. (PDF)

Full post as published by New Jersey Law Blog on July 16, 2009 (boomark / email).