The SEC obtained final judgements by consent against private fund managers Antony Caine, Anish Parvataneni, LJM Funds Management, Ltd., and LJM Partners, Ltd. (collectively, “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 SEC's complaint. The defendants agreed to pay $5.8 million and agreed to temporary bars from acting as investment advisers.