The Commodity Futures Trading Commission has filed an enforcement action in the U.S. District Court for the Southern District of New York, alleging that Linuxor Asset Management and Abbas Shah, the firm's principal, defrauded hedge fund participants in the Linuxor Global Macro Fund. Shah both managed the fund and was its trading adviser.

More specifically, the complaint shows that Shah sent at least two misleading e-mails to fund participants misrepresenting the net asset value of the fund and his success in recovering prior losses. The complaint also alleges that Shah and Linuxor failed to send clients quarterly reports and a timely annual report.

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