Shipkevich Bitcoin and ICO Attorney
Felix Shipkevich March 25, 2010

The CFTC obtained more than $4 million in restitution and civil monetary penalties in an order entered by the U.S. District Court for the Northern Division of Georgia against defendants Lake Dow Capital, LLC and Ty Edwards in CFTC v. Lake Dow, LLC, et al., a CFTC enforcement action filed in October 2005.

The CFTC’s complaint charged Lake Dow and Edwards with committing fraud in operating the Aurora Investment Fund, a commodity pool and hedge fund. Specifically, the CFTC charged that the defendants fraudulently solicited more than $26 million from customers and misappropriated customer funds. At the same time the complaint was filed, the court entered an order freezing more than $19 million of the defendants’ assets. The receiver appointed in this matter, S. Gregory Hays, was able to return more than $19 million to the pool participants.

On March 23, 2010, Judge Clarence Cooper entered a supplemental consent order requiring Lake Dow and Edwards to pay, jointly and severally, $2,282,258 in restitution and $1,879,156 in civil monetary penalties.