Former Catalyst Capital Manager Owes US $11 Million, Court Says

A former Catalyst Capital Advisors LLC investment fund portfolio manager must pay the US government $11.2 million for negligence-based securities and commodities fraud, a Wisconsin federal district court said.

This order follows a jury’s 2022 finding that Edward Walczak, who managed the Catalyst Hedged Futures Strategy Fund, violated the Securities Act by misrepresenting to investors that he would rely on methods for making trades that would limit loss exposure to no more than 8%. The jury also said Walczak violated the Advisers Act and the Commodity Exchange Act. Walczak wasn’t found liable for any claims alleging intentional misconduct, the court ...