According to Foresight News, the US Department of Justice announced that Peter Kambolin, CEO of investment firm Systematic Alpha Management LLC (SAM), has been sentenced to two years in prison, followed by 18 months of house arrest, and ordered to forfeit $1.6 million. SAM was founded in 2007 and managed over $720 million in assets by 2011. From January 2019 to November 2021, Kambolin, who served as a commodity trading advisor and commodity pool operator, participated in a 'preferential' scheme involving algorithmic trading strategies for cryptocurrency futures contracts, fraudulently allocating profits and losses to benefit himself.
Kambolin falsely claimed to his clients that SAM's trading strategies focused on cryptocurrency futures contracts and foreign exchange futures contracts. However, approximately half of Kambolin's trades in each pool involved stock index futures contracts. On October 11, 2023, Kambolin admitted to one count of conspiracy to commit commodity fraud.