Peter Kambolin, the former CEO of Systematic Alpha Management LLC, has confessed to participating in a unique “cherry-picking” scheme involving cryptocurrency futures contracts. This involves deliberately directing profitable or unprofitable trades to specific accounts for personal gain. Kambolin manipulated profits and losses from these futures trades for his own benefit, resulting in a charge of conspiracy to commit commodities fraud, carrying a possible five-year prison sentence.
This isn’t Kambolin’s first legal issue; the Commodity Futures Trading Commission (CFTC) had previously brought civil charges against him in May, accusing him of deceiving investors by promising equitable distribution of investment opportunities while funneling most profits into his own accounts, leaving customers with losses.
The scheme yielded over $1.4 million in trading profits, funding a luxurious lifestyle and channeling some earnings to foreign bank accounts in Belarus and Dominica managed by an accomplice. This case not only breaches trust but also risks eroding confidence in commodity markets, highlighting the Department of Justice’s commitment to using advanced data analytics to detect and prosecute financial misconduct.