Crypto trader admits to being guilty of ‘cherry picking’ future plans
The former CEO of a Miami-based investment firm pleaded guilty to conspiracy to commit commodity fraud involving crypto futures contracts and now faces up to five years in prison.
In an Oct. 12 statement, the United States Department of Justice said Peter Cambolin, the former CEO of Strategic Alpha Management (SAM) LLC, operated a “cherry-picking” scheme that marketed the company by offering algorithmic trading strategies involving futures contracts. Including both cryptocurrencies and commodities.
However, Cambolin misled investors that the fund included cryptocurrency futures and foreign exchange trades.
CEO pleads guilty to nationwide scheme involving foreign exchange and cryptocurrency futures contractshttps://t.co/aiafUgfRS3
— Crime Division (@DOJCrimDiv) October 12, 2023
“Camboline defrauded investors in the United States and abroad by depriving them of profitable business, among other things,” prosecutors wrote.
Cherry picking is the practice of fraudulent securities trading where a person does not assign the trades to a specific trading account until the person determines whether the trade has been profitable or unprofitable.
According to the DOJ, Cambolin defrauded investors in the U.S. and abroad by defrauding them of lucrative business ventures and then fraudulently using the proceeds to cover personal expenses, including renting a beachfront apartment.
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The proceeds of his scheme were transferred to foreign bank accounts controlled by a co-conspirator in Belarus and Dominica.
Assistant Inspector Shimon Richmond said: “Yesterday's plea found it necessary to hold the defendant accountable for his actions in the cherry picking scheme by misleading and defrauding and using the proceeds of the scheme to support his own personal lifestyle.
Cambolin now faces a maximum of five years in prison following his guilty plea. His sentencing hearing will take place at an unspecified future date.
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