<p><span>After a five-day trial, a jury serving in the United States District Court for the Western District of Wisconsin found Edward S. Walczak liable for negligence-based securities fraud for misrepresenting to investors how he would manage risk in the Catalyst Hedged Futures Strategy Fund.</span></p>
<p><span>The Commodity Futures Trading Commission today announced that on April 15, a jury in the U.S. District Court in the Western District of Wisconsin issued a verdict finding Edward S. Walczak liable for engaging in conduct that operated as a fraud or deceit upon investors, potential investors, or investment advisors, in violation of Section 4o(1)(B) of the Commodity Exchange Act (CEA).</span></p>
The Nutter Securities Enforcement Update is a periodic summary of noteworthy recent securities enforcement activity, settlements, decisions, and charges.