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www.oakvillebeaver.com The Oakville Beaver, Friday August 22, 2008 - 7 Fund manager racked up $200 M in losses DISTRESSED Continued from page 1 Philadelphia Alternative Asset Management (PAAM), were announced by the U.S. Commodity Futures Trading Commission (CFTC) in a settlement agreement dated Aug. 13. The order also imposes permanent trading and registration bans on PAAM. During a four year period, leading up to the CFTC complaint filed on June 21, 2005, Eustace incurred losses of approximately $200 million trading commodity futures and options for four commodity pools. The pools were the Option Capital Fund LP (Option Capital Fund), the Philadelphia Alternative Asset Fund, L.P. (LP Fund); the Philadelphia Alternative Feeder Fund LLC; and the Philadelphia Alternative Asset Fund, Ltd., Federal regulators allege Eustace concealed those losses misleading investors. At the outset of the litigation in 2005, the CFTC's action froze all the assets under the control of PAAM and Eustace and preserved more than $70 million for return to pool participants. The CFTC also obtained the appointment of a receiver to recover and distribute funds to his investors. Through related receivership litigation, an additional $96 million was recovered for the investors. Eustace's restitution obligation will be offset by any funds distributed through the receivership. Eustace, a graduate of the University of Pennsylvania's Wharton School also faces criminal charges in federal court in Philadelphia. A November indictment alleged that Eustace issued false account statements to make it appear as though he was making money for clients when he was not. The grand jury indictment also alleged that Eustace used $500,000 of investors' money to pay a legal settlement that should not have been charged to the fund. Efforts are being made by the prosecutors to have Eustace returned to the United States to stand trial on the charges. Eustace, believed to be in his early 40s, couldn't be reached for comment. His businesses formerly had an office in King of Prussia, Pa., a suburb of Philadelphia, and his current address is listed in the CFTC settlement as Oakville. SALE UP TO % ** MSRP r clearance! a odel end of yeck vehicles only. 2008 m last. In sto While supplies WE LEASE CHRYSLER, DODGE & JEEP DORVAL DRIVE R WYECROFT RD. SPEERS RD. Between Kerr & Dorval Your Friend in the Business! www.lockwoodchrysler.com KERR ST. TRAFALGAR R 175 Wyecroft Rd., Oakville 905.845.6653 QEW