U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

www.cftc.gov 

Office of Proceedings 

SOLOMON LIOU, 

Complainant, 

ELKTON INVESTMENTS LLC, 

and XIN WANG, 

Respondents. 

Introduction 

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* * CFTC Docket No. 12-R024 

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INITIAL DECISION 

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Solomon Liou claims $4,612 in damages, based on allegedly improper allocations of 

profits and losses and improper incentive fee charges, in connection with two accounts managed 

by Xin Wang, who denies any violations. As explained below, after carefully reviewing the 

parties' documentary submissions and considering their oral testimony, I have determined that 

Liou has failed to establish any violations of the Commodity Exchange Act or Commission 

regulations. 

Amounts are round to the nearest dollar. 

Factual Findings 

1. Solomon Liou, a resident of Gaithersburg, Maryland, has a master's degree in 

electronic engineering and works in IT. 

2. Elkton Investments LLC, located in Bethesda, Maryland, has been a registered 

commodity pool operator since 2007. Xin Wang, President and Chief Investment Officer of 

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Elkton, is a listed principal and registered associated person with Elkton. Wang conducted 

biomedical research at Celera Genomics until 2003, when he started a new career trading 

commodity futures. I found Wang's testimony generally more convincing and plausible than 

Liou' s testimony. 

Elkton is the manager of the Helix Fund, LLC, a single advisor investment fund 

continuously offered for sale pursuant to Regulation D of the Securities Act of 1933. The 

objective of the Helix Fund is to achieve better than average capital growth while attempting to 

control risks with disciplined money management. The Helix Fund principally writes options on 

S&P 500 futures contracts pursuant to the Elkton Trading Program. [See Helix Fund private 

placement memorandum and CPO disclosure document dated April 11, 2007 (Attachment I, 

Liou' s complaint.)] 

3. Starting in September of2007, Liou opened two accounts. For account #Hl028, Liou 

invested $200,000, and would receive back a total of about $268,357: $100,000 on or about 

February 28,2011,$163,843 on or about March 31,2011, and two checks for $3,824 and $690 

on or about April26, 2011. For account #H1071, Liou invested $49,450, and would receive 

back about $58,982 on or about April26, 2011. Thus, both accounts were profitable. 

4. After a sequence of events caused Liou and Wang to lose trust in each other, on 

January 31, 2011, Liou executed redemption requests for both accounts. After some back and 

forth about restrictions on redemptions imposed by the Helix Fund private placement 

memorandum, Wang told Liou that he would begin the redemption process with monthly 

installments of about $100,000. Liou replied "ok," advised Wang that he could continue trading 

any remaining funds until the end of March, and indicated that he preferred to get all of funds 

back by April 81

h which represented a modest acceleration of the anticipated redemption process. 

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Wang then redeemed the funds as set out above. As can be seen, Wang redeemed over 90% of 

the funds due Liou before April 8, 2011. 

5. Several months later, Liou began complaining that, for January, February and March 

2011, he should have received greater profits and he should not have been charged any incentive 

fees. 

Conclusions 

In order to establish any violations by Xin Wang, Solomon Liou must show by a 

preponderance of the evidence that the allocations of profits and losses or incentive fee charges 

in the two accounts managed by Xin Wang were somehow improper. After carefully reviewing 

the documentary evidence, including the relevant monthly account statements and e-mail 

exchanges between Liou and Wang, and considering the testimony ofLiou and Wang, it is clear 

that Liou's allegations are based more on conjecture than reliable evidence. Moreover, Liou 

significantly undermined his calculation of damages by relying on routine monthly e-mails from 

Wang where Wang reported obviously estimated approximate profits or losses before delivery of 

the formal monthly account statements which more precisely reported profits or losses. Thus, 

Liou has failed to carry his evidentiary burden. 

ORDER 

Solomon Liou has failed to establish any violations of the Commodity Exchange Act or 

Commission regulations. Accordingly, the complaint against Xin Wang and Elkton Investments 

LLC is dismissed. 

Dated Mar!f.5 14. . /1 

.;v./fA~~ 

Philip . McGuire, 

Judgment Officer 

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