Ex-Hedge Fund Manager Ordered to Pay Nearly $300 Million for Defrauding Clients

On August 13, 2008, the United States District Court for the Eastern District of Pennsylvania ordered Paul M. Eustace, the former president and founder of Philadelphia Alternative Asset Management Co. (PAAMCO), a hedge fund manager, to pay $279 million in restitution and a $12 million civil penalty for defrauding clients, and permanently banned him from trading activities. Eustace incurred losses of approximately $200 million trading commodity futures and options in various commodity pools, and issued false trading account statements concealing those losses.

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