LJM Funds Management, Ltd.

The Securities and Exchange Commission has reached a settlement with Anthony Caine, Anish Parvataneni, and their affiliated entities LJM Funds Management and LJM Partners over allegations of securities fraud related to a trading strategy that caused investors to lose over $1 billion.

According to the SEC’s complaint, Caine, Parvataneni, and LJM allegedly misrepresented the risks associated with LJM’s “net short” options strategy, misleading investors about worst-case scenarios and overstating their risk management practices. These alleged misrepresentations enabled the firms to attract more assets under management—leading to millions in compensation for the defendants.

In February 2018, a sharp spike in market volatility caused catastrophic losses in LJM-managed funds. The SEC asserted that these losses exposed the severe flaws in the risk disclosures provided to investors.

The final judgments, entered on June 30, 2025, permanently enjoin the defendants from violating key antifraud provisions of the federal securities laws. Caine and Parvataneni are also barred from managing or advising third-party investments for periods of three years and one year, respectively. In addition to injunctive relief, the court ordered:

• LJMFM and Caine to pay over $2.4 million in disgorgement and interest

• LJM Partners and Caine to pay another $2.2 million in disgorgement and interest

• Parvataneni to pay over $700,000 in disgorgement and interest

• Civil penalties of $500,000 for Caine and $200,000 for Parvataneni

Investors affected by the collapse of the LJM funds may have grounds for recovery if they were misled about the fund’s risks or were steered into unsuitable investment strategies.

If you invested in LJM-managed funds and suffered significant losses, contact ChapmanAlbin to explore your legal options and determine whether you may be eligible for financial recovery.

Call 1-877-410-8172 or visit chapmanalbin.com to schedule a free consultation.