United States District Court 

for the 

Southern District of Florida 

Commodity Futures Trading 

Commission, Plaintiff, 

v. 

Systematic Alpha Management, 

LLC, and others, Defendants. 

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Civil Action No. 23-21527-Civ-Scola 

Order Granting Expedited Ex Parte Motion 

for Statutory Restraining Order and for Expedited Discovery 

 This matter is before the Court upon the expedited ex parte motion for 

statutory restraining order and for expedited discovery filed by the Plaintiff, the 

Commodity Futures Trading Commission (the “Plaintiff” or “CFTC”). (Mot., ECF 

No. 5.) The CFTC has also filed a Complaint seeking a permanent injunction and 

other relief (Compl., ECF No. 1), and a memorandum of law in support of its 

motion (Memo., ECF No. 6). Pursuant to Section 6c(a) of the Commodity 

Exchange Act (the “Act”), 7 U.S.C. § 13a-1(a), and in accordance with Rule 65 of 

the Federal Rules of Civil Procedure (“Rule 65”), the CFTC moves for an ex parte

statutory restraining order freezing assets and allowing inspection of records. 

Additionally, the CFTC has moved the Court for expedited discovery as provided 

for in Fed. R. Civ. P. 26(d). Having considered the pleadings, declarations, 

exhibits, and memorandum filed in support of the CFTC’s motion, and the 

relevant legal authorities, the Court grants the motion. (ECF No. 5.) 

1. Jurisdiction 

(a) This Court has jurisdiction over this action under 28 U.S.C. § 1331 

(federal question jurisdiction) and 28 U.S.C. § 1345 (district courts have original 

jurisdiction over civil actions commenced by the United States or by any agency 

expressly authorized to sue by Act of Congress). 7 U.S.C. § 13a-1 authorizes the 

CFTC to seek injunctive relief against any person whenever it appears that such 

person has engaged, is engaging, or is about to engage in any act or practice 

constituting a violation of any provision of the Act or any rule, regulations, or 

order thereunder. 

(b) Venue lies properly within this District pursuant to 7 U.S.C. § 13a1(e) and 28 U.S.C. § 1391(c)(3). 

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2. Ex Parte Statutory Restraining Order

(a) The CFTC has made a prima facie showing that beginning as early 

as January 2019 and continuing at least through November 2021 (the “Relevant 

Period”), Defendants Systematic Alpha Management, LLC (“SAM”) and Peter 

Kambolin (“Kambolin”) (collectively, the “Defendants”) have defrauded pool 

participants and managed account customers by (1) placing trades collectively 

for both certain accounts belonging to commodity pools and managed account 

customers (the “Customer Accounts”) and accounts owned by the Relief 

Defendants and controlled by Defendant Kambolin or members of his family (the 

“Proprietary Accounts”); and (2) unfairly and inequitably allocating these trades 

between the Customer Accounts and the Proprietary Accounts by allocating 

profitable trades to the Proprietary Accounts and unprofitable or less profitable 

trades to the Customer Accounts. By allocating trades in this manner, the 

Defendants generated trading profits of more than $1.4 million for the 

Proprietary Accounts, even though these accounts were very thinly capitalized; 

deprived customers of their fair share of the trading profits; and forced 

customers to bear over $1.5 million in trading losses. The Defendants further 

defrauded these same customers by misrepresenting to them that the 

Defendants would allocate investment opportunities fairly and equitably and 

regarding the investment strategies the Defendants would pursue.

(b) Therefore, there is good cause to believe that Defendants Kambolin 

and SAM, by and through their agents, principals, and control person(s), 

including Defendant Kambolin, have engaged, are engaging in, or are about to 

engage in acts and practices that constitute violations of the Act and CFTC 

Regulations (“Regulations”), specifically in violation of Sections 4b(a)(1)(A)-(C) 

and 4o(1)(A)-(B) of the Act, 7 U.S.C. §§ 6b(a)(1)(A)-(C) & 6o(1)(A)-(B), and 

Regulation 1.35(b)(5)(iv)(B), 17 C.F.R. §1.35(b)(5)(iv)(B) (2022). 

(c) There is also good cause to believe that Defendants Jersey City 

Partners, LLC (“Jersey City”) and Thor Enterprises International, Inc. (“Thor”) 

(collectively, the “Relief Defendants”) have received, are receiving, and/or are 

about to receive funds, assets, or other property (“assets”) as a result of 

Defendants’ violative acts and practices. The Relief Defendants do not have any 

legitimate interest or entitlement to these assets received as a result of the 

Defendants’ violative conduct and have been unjustifiably enriched thereby.

(d) There is also good cause to believe that immediate and irreparable 

damage to the Court’s ability to grant effective final relief for customers in the 

form of monetary or other redress will occur from the withdrawal, transfer, 

removal, dissipation, or other disposition of funds, assets, or other property 

(“assets”) and/or the destruction, alteration, or disposition of books and records 

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and other documents (“records”) by the Defendants and the Relief Defendants, 

unless the Defendants and the Relief Defendants are immediately restrained and 

enjoined by Order of this Court.

(e) Therefore, there is good cause for the Court to freeze assets owned, 

controlled, managed, or held by the Defendants and the Relief Defendants or in 

which they have any beneficial interest.

(f) There is also good cause for the Court to prohibit the Defendants 

and the Relief Defendants from destroying, altering, or disposing of records, 

and/or denying representatives of the CFTC access to inspect records, when and 

as requested, to ensure that CFTC representatives have immediate and complete 

access to those records.

(g) In summary, this is a proper case for granting a restraining order ex 

parte freezing assets and allowing inspection of records because there is good 

cause to believe that immediate and irreparable damage to the Court’s ability to 

grant effective final relief for Defendants’ violations of 7 U.S.C. §§ 6b(a)(1)(A)-(C) 

& 6o(1)(A)-(B) and 17 C.F.R. §1.35(b)(5)(iv)(B) (2022), in the form of monetary or 

other redress, will occur from the sale, transfer, assignment, or other disposition 

of assets and/or the destruction, alteration, or disposition of books and records 

and other documents by the Defendants or the Relief Defendants unless the 

Defendants and the Relief Defendants are immediately restrained and enjoined 

by Order of the Court. 

3. Expedited Discovery

(a) Fed. R. Civ. Procedure 26(d)(1) authorizes the Court to order 

expedited discovery. The CFTC requests leave to: (1) take the depositions of the 

Defendants, the Relief Defendants, and their representatives and employees 

upon two (2) calendar days’ notice pursuant to Fed. R. Civ. P. 30(a) and 45, with 

notice given personally, by facsimile or by electronic mail, and, if necessary, the 

deposition may last more than seven (7) hours; (2) request that the Defendants 

and the Relief Defendants produce, on an expedited basis, any relevant 

documents not otherwise required to be produced under the requested statutory 

restraining order; and, (3) issue subpoenas to third parties that are returnable 

within seven (7) calendar days and require the third party to submit to a 

deposition upon seven (7) days’ notice, in order to gain information about the 

Defendants’ customers who have been defrauded and to help locate the 

Defendants’ and the Relief Defendants’ assets. 

(b) The CFTC represents that such discovery is necessary in advance of 

the hearing on its Motion for Preliminary Injunction. See Raza v. City of New 

York, 998 F. Supp. 2d 70, 75 (E.D.N.Y. 2013) (recognizing courts have broad 

discretion over the management of discovery, including the timing and scope of 

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discovery, as well as the power to expedite discovery); see Fed. R. Civ. P. 26(d) 

(Advisory Committee notes to 1993 amendment) (recognizing that expedited 

discovery will be “appropriate in some cases, such as those involving requests for 

preliminary injunction”). Specifically, the CFTC represents that such discovery 

is necessary due to the expedited nature of injunctive proceedings in order for 

the CFTC to obtain information, including possible testimony from the 

Defendants or the Relief Defendants, in advance of the hearing on the CFTC’s 

Motion for Preliminary Injunction. 

(c) Upon review and consideration, the Court finds that expedited 

discovery is appropriate. 

4. Definitions 

For the purposes of this Order, the following definitions apply:

(a) The term “assets” encompasses any legal or equitable interest in, 

right to, or claim to, any real or personal property, whether individually or 

jointly, directly or indirectly controlled, and wherever located, including but not 

limited to: chattels, goods, instruments, equipment, fixtures, general 

intangibles, effects, leaseholds mail or other deliveries, inventory, checks, notes, 

accounts (including, but not limited to, bank accounts and accounts at other 

financial institutions), credits, receivables, lines of credit, contracts (including 

spot, futures, options, or swaps contracts), insurance policies, and all funds, 

wherever located, whether in the United States or outside the United States.

(b) The term “records” encompasses “documents” and “electronically 

stored information” as those terms are used in Fed. R. Civ. P. 34(a), and 

includes, but is not limited to, all writings, drawings, graphs, charts, 

photographs, sound recordings, images, and other data or other data 

compilations—stored in any medium from which information can be obtained or 

translated, if necessary, into reasonable usable form. The term “records” also 

refers to each and every such item in Defendants’ and Relief Defendants’ actual 

or constructive possession, including but not limited to: (i) all such items within 

the custody or control of any agents, employers, employees, or partners of the 

Defendants and Relief Defendants; and (ii) all items which Defendants and Relief 

Defendants have a legal or equitable right to obtain from another person. A draft 

or non-identical copy is a separate item within the meaning of the term. A 

record also includes the file and folder tabs associated with each original and 

copy. 

(c) “Defendant(s)” means and refers to Systematic Alpha Management, 

LLC and Peter Kambolin.

(d) “Relief Defendant(s)” means and refers to Jersey City Partners, LLC 

and Thor Enterprises International, Inc.

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5. Relief Granted 

Accordingly, it is Ordered and Adjudged as follows: 

A. Asset Freeze Order Prohibiting the Withdrawal, Transfer, 

Removal, Dissipation, and Disposal of Assets

(1) The Defendants and the Relief Defendants are immediately 

restrained and enjoined, except as otherwise ordered by this Court, from directly 

or indirectly: withdrawing, transferring, removing, dissipating, or otherwise 

disposing of any assets, wherever located, including the Defendants’ and the 

Relief Defendants’ assets held outside the United States; and 

(2) The assets affected by this Order shall include existing assets and 

assets acquired after the effective date of this Order.

B. Maintenance of and Access to All Records Relating to the 

Business Activities and Business and Personal Finances 

(3) The Defendants and the Relief Defendants are restrained from 

directly or indirectly destroying, altering, or disposing of, in any manner, any 

records that relate or refer to the business activities or business or personal 

finances of any Defendant or Relief Defendant.

(4) Representatives of the CFTC shall be immediately allowed to inspect 

any records that, in part or in whole, contain, relate, or refer to the business 

activities or business or personal finances of the Defendants and Relief 

Defendants, including, but not limited to, both hard-copy documents and 

electronically stored information, wherever they may be situated and whether 

they are in the possession of the Defendants, Relief Defendants, or others. To 

ensure preservation and facilitate meaningful inspection and review of these 

records, the Defendants and the Relief Defendants shall allow representatives of 

the CFTC to make copies of these records, including complete forensic images of 

any devices containing any such records, and if on-site copying of these records 

and/or forensic imaging of devices is not practicable, representatives may make 

such copies and/or forensic images off-site. After any such off-site copying 

and/or forensic imaging, the CFTC shall promptly return the original documents 

and devices upon which electronic information is stored.

(5) To further facilitate meaningful inspection and review, the

Defendants and the Relief Defendants shall, absent a valid assertion of their 

respective rights against self-incrimination under the Fifth Amendment, 

promptly provide CFTC staff with:

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a. the location of all records relating or referring to the business 

activities and business and personal finances of the Defendants and 

the Relief Defendants; 

b. all identification numbers and other identifying information 

for websites, cloud storage services, email and smartphone accounts, 

online chat and messaging services, and all accounts at any bank, 

financial institution, or brokerage firm (including any introducing 

broker or futures commission merchant) owned, controlled or operated 

by any Defendant or Relief Defendant, or to which any Defendant and 

Relief Defendant has access; and 

c. all passwords to, and the location, make and model of, all 

computers and/or mobile electronic devices owned and/or used by any 

Defendant or Relief Defendant in connection with their business 

activities and business and personal finances.

(6) When inspecting and reviewing records and/or contents of forensic 

images that are subject to this Order, including those contained on computers 

and/or other devices, the CFTC should undertake reasonable measures to 

prevent review of the Defendants’ or Relief Defendants’ privileged 

communications and other nonbusiness, nonfinancial materials by the CFTC’s 

attorneys and other staff who are part of the litigation team in this matter. 

Moreover, Defendants and Relief Defendants (or their counsel) shall promptly 

contact the CFTC’s attorneys to assert any claims of privilege or other legal 

objections relating to the inspection and review of any records or contents of 

forensic images the that are subject to this Order and promptly cooperate with 

the CFTC’s attorneys to develop reasonable protocols to isolate and prevent 

disclosure of claimed privileged and other nonbusiness, nonfinancial materials 

to the CFTC’s attorneys and other staff who are part of the litigation team in this 

matter. However, nothing herein shall excuse Defendants or Relief Defendants 

from full and immediate compliance with this Court’s Order permitting the CFTC

to inspect and review records and contents of forensic images which relate to 

Defendants’ or Relief Defendants’ business activities and their business and 

personal finances.

C. Notice to Financial Institutions and Others that Hold or Control 

Assets or Records

(7) To ensure the effectiveness of the asset freeze and pending further 

Order of this Court, any financial or brokerage institution, business entity, or 

person that receives actual notice of this Order and holds, controls, or maintains 

custody of any asset or other property of the Defendants or the Relief Defendants 

shall not, in active concert or participation with the Defendants or the Relief 

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Defendants, permit the Defendants, the Relief Defendants, or other person(s) to 

withdraw, transfer, remove, dissipate, or otherwise dispose of any of the 

Defendants’ or the Relief Defendants’ assets, except as directed by further order 

of the Court.

(8) Any financial or brokerage institution, business entity, or person 

that receives notice of this Order by personal service or otherwise shall not, in 

active concert or participation with any Defendant or Relief Defendant, directly 

or indirectly destroy, alter or dispose of, in any manner, any records relating to 

the business activities and business and personal finances of any Defendant or 

Relief Defendant.

(9) Further, any such financial or brokerage institution, business entity, 

or person that receives actual notice of this Order and holds, controls, or 

maintains custody of any account or asset of any Defendant or Relief Defendant, 

or has held, controlled, or maintained custody of any such account or asset of 

any Defendant or Relief Defendant at any time since January 2019 shall not, in 

active concert or participation with the Defendants or the Relief Defendants, 

deny a request by the CFTC to inspect all records pertaining to every account or 

asset owned, controlled, managed, or held by, on behalf of, or for the benefit of 

any Defendant or Relief Defendant, including, but not limited to, originals or 

copies of account applications, account statements, signature cards, checks, 

drafts, deposit tickets, transfers to and from the accounts, all other debit and 

credit instruments or slips, currency transaction reports, 1099 forms, and safe 

deposit box logs. As an alternative to allowing inspection of records, a financial 

or brokerage institution, business entity, or other person may provide copies of 

records requested by the CFTC.

D. Persons Bound by this Order

(10) This Order is binding on any person who receives actual notice of 

this Order by personal service or otherwise and is acting in the capacity of an 

officer, agent, servant, employee, or attorney of any Defendant or Relief 

Defendant, or is in active concert or participation with any Defendant or Relief 

Defendant.

E. Bond Not Required of CFTC

(11) As the CFTC has made a proper showing under Section 6c(b) of the 

Act, 7 U.S.C. § 13a-1(b), it is not required to post any bond in connection with 

this Order.

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F. Service of Order and Assistance of United States Marshal 

Service and/or Other Law Enforcement Personnel

(12) Copies of this Order may be served by any means, including via 

email or facsimile transmission, upon any financial institution or other entity or 

person that may have possession, custody, or control of any records or assets of 

any Defendant or Relief Defendant, or that may be the subject of this Order. 

(13) Thomas Simek, Rebecca Jelinek, Lauren Fulks, Christopher Beatty, 

representatives of the United States Marshal Service, and representatives of the 

Federal Deposit Insurance Corporation-Office of Inspector General (“FDIC-OIG”) 

are specially appointed by the Court to effect service. 

(14) The United States Marshals Service and representatives of FDIC-OIG 

are authorized to: a) accompany and assist the CFTC’s representatives in the 

service and execution of the Summons, Complaint, and this Order on the 

Defendants and the Relief Defendants; and b) help maintain lawful order while 

CFTC representatives inspect records as provided in this Order. 

G. Service on the CFTC

(15) The Defendants and the Relief Defendants shall comply with all 

electronic filing rules and requirements of the U.S. District Court for the 

Southern District of Florida and shall serve all pleadings, correspondence, 

notices required by this Order, and other materials on the CFTC by delivering a 

copy to Thomas Simek, Division of Enforcement, Commodity Futures Trading 

Commission, 2600 Grand Blvd., Suite 210, Kansas City, Missouri 64108 

(tsimek@cftc.gov), by electronic filing, e-mail, personal delivery or courier service 

(such as Federal Express or United Parcel Service) and not by regular mail due 

to potential delay resulting from heightened security and decontamination 

procedures applicable to the CFTC’s regular mail. 

H. Further Proceedings 

(16) The CFTC’s Motion for Preliminary Injunction is set for a hearing 

before this Court in the United States Courthouse located at the Wilkie D. 

Ferguson, Jr., U.S. Courthouse, 400 North Miami Avenue, Miami, Florida, 

33128, Courtroom 12-3, on May 8, 2023, at 8:30 A.M. Should any party wish 

to file a memorandum of law or other papers concerning the issuance of a 

preliminary injunction against the Defendants or the Relief Defendants, such 

materials shall be filed, served, and received by all parties at least two days 

before the hearing ordered above. 

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I. Expedited Discovery

(17) The CFTC is hereby granted leave to: (1) take the depositions of the 

Defendants, the Relief Defendants, and their representatives and employees 

upon two (2) calendar days’ notice pursuant to Fed. R. Civ. P. 30(a) and 45, with 

notice given personally, by facsimile or by electronic mail, and, if necessary, the 

deposition may last more than seven (7) hours; (2) request that the Defendants 

and the Relief Defendants produce, on an expedited basis, any relevant

documents not otherwise required to be produced under the requested statutory 

restraining order; and, (3) issue subpoenas to third parties that are returnable 

within seven (7) calendar days and require the third party to submit to a 

deposition upon seven (7) days’ notice, in order to gain information about the 

Defendants’ customers who have been defrauded and to help locate the 

Defendants’ and the Relief Defendants’ assets.

J. Force and Effect

(18) This Order shall remain in full force and effect until May 8, 2023,

unless extended further by order of this Court pursuant to Rule 65(b)(2), and 

this Court retains jurisdiction of this matter for all purposes.

Done and ordered in Miami, Florida, on April 24, 2023.

________________________________

Robert N. Scola, Jr.

United States District Judge

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