2025-07-01 sec-litreleases litigation_release 66 KB 3,091 chars

SEC v. Anthony Caine; Anish Parvataneni; LJM Funds Management, Ltd.; and LJM Partners, Ltd., No. LR-26338, Northern District of Illinois (July 1, 2025) — Press Release

raw: Anthony Caine; Anish Parvataneni; LJM Funds Management, Ltd.; LJM Partners, Ltd.

Anthony Caine; Anish Parvataneni; LJM Funds Management, Ltd.; LJM Partners, Ltd., No. 1:21-cv-02859 (July 1, 2025)

Caption
Durdu v. Teva Pharmaceuticals USA, Inc.
Source PDF JSON
summary

Antony Caine, Anish Parvataneni, and LJM Funds Management settled SEC charges for misrepresenting risks in an options strategy that led to over $1 billion in trading losses.

paragraph

The SEC obtained final judgments against Antony Caine, Anish Parvataneni, and LJM entities for defrauding investors through material misrepresentations of their 'net short' options strategy. The misconduct resulted in over $1 billion in trading losses in February 2018 and allowed defendants to secure millions in compensation. Defendants face charges including violations of the Securities Act, the Exchange Act, and the Investment Advisers Act.

narrative

The SEC obtained final judgments against Antony Caine, Anish Parvataneni, and LJM Funds Management, Ltd. for misrepresenting the risks and worst-case loss estimates of their 'net short' options trading strategy. These misrepresentations enabled the defendants to grow assets under management and collect millions in compensation before the funds suffered over $1 billion in losses during a 2018 market volatility spike. The defendants consented to judgments involving violations of the Securities Act, the Exchange Act, and the Investment Advisers Act. Financial remedies include millions in combined disgorgement and interest, plus civil penalties of $500,000 for Caine and $200,000 for Parvataneni. Additionally, Caine and Parvataneni received industry bans of three and one years, respectively, from managing or advising on third-party securities investments.

Enriched metadata

Scheme
investment-adviser-fraud (100%)
Court
Northern District of Illinois
Case No.
1:21-cv-02859
Outcome
settled
Disgorgement
$1,720,317
Civil penalty
$200,000
Victim loss
$1,000,000,000
Entity
LJM Funds Management, Ltd.
Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActSections 206(1) and 206(2) of the Investment Advisers ActSections 206(1) and 206(2) of the Investment Advisers ActSection 34(b) of the Investment Company ActSection 15(c) of the Investment Company ActRule 10b-5
Parties
DurduTeva Pharmaceuticals USA, Inc.
Keywords
ljmcaineparvatanenifundssecurities exchangesecltdsecuritiesljmfmanthony cainecaine anishanish parvatanenifunds managementexchange commissiondisgorgement prejudgment

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 10
  • $1.00B $1 Billion ≥$1B
  • $1.00B $1 billion ≥$1B
  • $1.72M $1,720,317 $1M–$10M
  • $1.57M $1,567,713 $1M–$10M
  • $699K $699,129 $100K–$1M
  • $637K $637,112 $100K–$1M
  • $513K $512,724 $100K–$1M
  • $500K $500,000 $100K–$1M
  • $208K $208,368 $100K–$1M
  • $200K $200,000 $100K–$1M
Entities 6
  • person final judgment
  • person final judgments
  • agency sec investigation
  • agency sec litigation
  • agency Securities and Exchange Commission
  • person their fiduciary duties
Triples 14
  • Securities And Exchange Commission Obtained Final Judgments By Consent Against Defendants Antony Caine, Anish Parvataneni, Ljm Funds Management Ltd, Ljm Partners Ltd
  • Defendants Antony Caine, Anish Parvataneni, Ljm Funds Management Ltd, Ljm Partners Ltd Breached Their Fiduciary Duties
  • Defendants Antony Caine, Anish Parvataneni, Ljm Funds Management Ltd, Ljm Partners Ltd Made Material Misrepresentations About Fund Risks
  • Funds Suffered More Than $1 Billion In Trading Losses
  • Final Judgments Enjoined Defendants From Violations Of Antifraud Provisions
  • Final Judgment Ordered Ljm Funds Management Ltd And Antony Caine To Pay Disgorgement Of $1,720,317 With Prejudgment Interest Of $699,129
  • Final Judgment Ordered Ljm Partners Ltd And Antony Caine To Pay Disgorgement Of $1,567,713 With Prejudgment Interest Of $637,112
  • Final Judgment Ordered Anish Parvataneni To Pay Disgorgement Of $512,724 With Prejudgment Interest Of $208,368
  • Final Judgment Ordered Antony Caine To Pay Civil Penalty Of $500,000
  • Final Judgment Ordered Anish Parvataneni To Pay Civil Penalty Of $200,000
  • Final Judgment Enjoined Antony Caine From Managing Or Advising On Securities Investments For Three Years
  • Final Judgment Enjoined Anish Parvataneni From Managing Or Advising On Securities Investments For One Year
  • SEC Investigation Conducted By Kevin Wisniewski, Jake Schmidt, Marlene Key-Patterson, Terrance Moran Under Supervision Of Jeffrey Shank
  • SEC Litigation Led By Kevin Wisniewski, Michael Foster, Robert Moye, Jake Schmidt, Marlene Key-Patterson
PDF (from attached: judgment)
Parvataneni (“Defendant”) having entered a general appearance; consented to the Court’s · Source
Text layers
Extracted body text (3,091c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26338 / July 1, 2025 Securities and Exchange Commission v. Anthony Caine, et al., No. 1:21-cv-02859 (N.D. Ill. filed May 27, 2021) SEC Settles Charges Against Advisers and Portfolio Managers in Lawsuit Alleging Misrepresentations About Risks in Funds That Lost More than $1 Billion On June 30, 2025, the Securities and Exchange Commission obtained final judgments by consent against Defendants Antony Caine, Anish Parvataneni, LJM Funds Management, Ltd. (“LJMFM”) and LJM Partners, Ltd. (collectively with LJMFM, “LJM”), whom the SEC previously charged with allegedly defrauding investors by making false and misleading statements about the risks of LJM’s “net short” options trading strategy and LJM’s risk management practices. The SEC’s complaint alleged that defendants breached their fiduciary duties and made material misrepresentations relating to the worst-case loss estimates for the LJM managed funds and the funds’ risks. The complaint further alleged that the misrepresentations allowed defendants to grow their assets under management, resulting in them receiving millions of dollars of compensation. In February 2018, during a large spike in market volatility, the Funds suffered more than $1 billion in trading losses, according to the complaint. The final judgments, to which all defendants consented without admitting or denying the SEC’s allegations, permanently enjoined each of the defendants from violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940; Caine, LJMFM, and Parvataneni from violations of Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder; LJMFM and Parvataneni from violations of Section 34(b) of the Investment Company Act of 1940; and LJMFM from violations of Section 15(c) of the Investment Company Act and Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. The final judgment ordered LJMFM and Caine to pay, jointly and severally, disgorgement of $1,720,317 with prejudgment interest of $699,129; LJM Partners and Caine to pay, jointly and severally, disgorgement of $1,567,713 with prejudgment interest of $637,112; and Parvataneni to pay disgorgement of $512,724 with prejudgment interest of $208,368. The final judgment further ordered Caine to pay a $500,000 civil penalty and Parvataneni to pay a $200,000 civil penalty, and enjoined Caine for three years, and Parvataneni for one year, from managing or advising on securities investments for, or acting as or being associated with an investment adviser to, any third-party, except for their wives and children. The SEC’s investigation was conducted by Kevin Wisniewski, Jake Schmidt, Marlene Key-Patterson, and Terrance Moran of the SEC’s Chicago Regional Office, under the supervision of Jeffrey Shank. The SEC’s litigation was led by Kevin Wisniewski, Michael Foster, Robert Moye, Jake Schmidt, and Marlene-Key Patterson.
OCR text (3,091c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26338 / July 1, 2025 Securities and Exchange Commission v. Anthony Caine, et al., No. 1:21-cv-02859 (N.D. Ill. filed May 27, 2021) SEC Settles Charges Against Advisers and Portfolio Managers in Lawsuit Alleging Misrepresentations About Risks in Funds That Lost More than $1 Billion On June 30, 2025, the Securities and Exchange Commission obtained final judgments by consent against Defendants Antony Caine, Anish Parvataneni, LJM Funds Management, Ltd. (“LJMFM”) and LJM Partners, Ltd. (collectively with LJMFM, “LJM”), whom the SEC previously charged with allegedly defrauding investors by making false and misleading statements about the risks of LJM’s “net short” options trading strategy and LJM’s risk management practices. The SEC’s complaint alleged that defendants breached their fiduciary duties and made material misrepresentations relating to the worst-case loss estimates for the LJM managed funds and the funds’ risks. The complaint further alleged that the misrepresentations allowed defendants to grow their assets under management, resulting in them receiving millions of dollars of compensation. In February 2018, during a large spike in market volatility, the Funds suffered more than $1 billion in trading losses, according to the complaint. The final judgments, to which all defendants consented without admitting or denying the SEC’s allegations, permanently enjoined each of the defendants from violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940; Caine, LJMFM, and Parvataneni from violations of Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder; LJMFM and Parvataneni from violations of Section 34(b) of the Investment Company Act of 1940; and LJMFM from violations of Section 15(c) of the Investment Company Act and Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. The final judgment ordered LJMFM and Caine to pay, jointly and severally, disgorgement of $1,720,317 with prejudgment interest of $699,129; LJM Partners and Caine to pay, jointly and severally, disgorgement of $1,567,713 with prejudgment interest of $637,112; and Parvataneni to pay disgorgement of $512,724 with prejudgment interest of $208,368. The final judgment further ordered Caine to pay a $500,000 civil penalty and Parvataneni to pay a $200,000 civil penalty, and enjoined Caine for three years, and Parvataneni for one year, from managing or advising on securities investments for, or acting as or being associated with an investment adviser to, any third-party, except for their wives and children. The SEC’s investigation was conducted by Kevin Wisniewski, Jake Schmidt, Marlene Key-Patterson, and Terrance Moran of the SEC’s Chicago Regional Office, under the supervision of Jeffrey Shank. The SEC’s litigation was led by Kevin Wisniewski, Michael Foster, Robert Moye, Jake Schmidt, and Marlene-Key Patterson.

Related documents (2)