Hedge fund manager Paul Eustace was ordered by the U.S. District Court in Philadelphia to return $279 million to investors he defrauded through four commodity pools, CFTC spokeswoman Dennis Holden said today.
Mr. Eustace, who lives in Oakville, Ontario, also was ordered to pay $12 million in civil penalties, Mr. Holden said.
The Commodities Futures Trading Commission brought the case against Mr. Eustace in June 2005 after his asset management firm, Philadelphia Alternative Asset Management, collapsed. The futures and options commodity fund sustained $200 million in losses, which Mr. Eustace tried to conceal through false account statements, the CFTC spokesman said.
The Aug. 13 court order also permanently barred PAAM from trading, required the firm to return $276 million to investors, minus what Mr. Eustace can pay and restitutions already made. PAAM was also ordered to pay $8.8 million in civil penalties.