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Tuesday, February 25, 2020

Lake Shore Files Emergency Motion To Thaw Assets

Date: Monday, July 23, 2007
Author: Christopher Faille, HedgeWorld

CHICAGO (HedgeWorld.com)—Lake Shore Asset Management Ltd., a commodity trading adviser whose investors' assets have been frozen by a federal district court in Chicago, filed an emergency motion Thursday [July 19] asking that the assets be released next week.

The assets were frozen because the Commodity Futures Trading Commission believes that Lake Shore has withheld information it is obliged by statute to disclose Previous HedgeWorld Story. Lake Shore has disputed the CFTC's claims, saying they resulted from a series of misunderstandings Previous HedgeWorld Story.

Much of the CFTC's complaint, and much of an answer to that complaint that Lake Shore filed with the court on Wednesday [July 18], focuses on information provided to the CFTC and to the National Futures Association by Lake Shore Asset Management's non-executive chairman, Laurence Rosenberg.

In a 14-page answer to the CFTC's complaint, Lake Shore's attorneys repeatedly said that they "lack knowledge or information sufficient to form a belief" as to what statements Mr. Rosenberg made to either the NFA or the CFTC staff.

Lake Shore denied in general that it has "engaged or is about to engage in acts and practices in violation of … the Commodity Exchange Act."

Lake Shore filed its emergency motion for the end of the asset freeze the day after it filed its answer to the CFTC complaint. It represented the dispute as one of the extra-territorial claims of the CFTC, which Lake Shore contends is seeking records pertaining to the world-wide activities of the Lake Shore Group of Companies. The dispute over whether the CFTC has that authority "raises issues of fact as well as issues of law," and the agency "should not be permitted to hold hostage the assets of the Funds and their investors as leverage to attempt to coerce LSGC into complying with CFTC's disputed demands."

Lake Shore has requested that the court hear the motion and rule on it during the week of July 23.