|CFTC Seal
       Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | CFTC Seal                                                                                                                                                                                                                                                                                                                                              | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581
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|CFTC Seal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                                                                                     
|Release: 5135-05For Release: October 24, 2005
      U.S. COMMODITY FUTURES TRADING COMMISSION FILES FRAUD ACTION AGAINST HEDGE FUND
       OPERATED BY LAKE DOW CAPITAL
      Federal Court Freezes Assets of Hedge Fund and its Operator
      WASHINGTON, DC – The U.S. Commodity Futures Trading Commission (CFTC)
       announced today that the United States District Court for the Northern District of
       Georgia entered a restraining order freezing the assets of Lake Dow Capital,
       LLC (Lake Dow) and Ty Edwards (Edwards) in a CFTC action alleging fraud
       committed by those parties. The order also froze the assets of hedge fund
       Aurora Investment Fund (Aurora Fund).
      Specifically, the CFTC’s complaint alleges that Lake Dow, a registered
       commodity pool operator and commodity trading advisor, and Edwards, a principal
       and registered associated person of Lake Dow, falsely represented to actual and
       prospective participants in the Aurora Fund commodity pool, a hedge fund operated
       by Lake Dow and Edwards, that Aurora Fund had consistently generated annual
       profits without a single losing month. The complaint further alleges that Lake Dow
       and Edwards misrepresented to actual and prospective participants that they
       managed between $60 and $100 million, when funds in the Aurora Fund did not exceed
       $20 million. According to the complaint, Edwards also attributed to the Aurora
       Fund performance results that were not based upon any actual financial documents,
       actual performance, or any analysis thereof.
      The complaint also alleges that Edwards failed to disclose to participants in the
       commodity pool the fact that he is a named defendant in a pending Commission civil
       injunctive action alleging fraud, CFTC v. Risk Capital Trading Group,
       Deron Baugh, Tyrone Edwards, et. al, Case No. 103 CV-2633 (N.D. GA 2003), and
       that he withheld material information from the National Futures Association (NFA)
       by willfully concealing the identity of certain participants in the pool.
      The CFTC’s ongoing action seeks orders of preliminary and permanent
       injunction against the defendants, an accounting for all funds, disgorgement of
       benefits, repayment to injured participants, monetary penalties and other relief.
       The Commission would like to thank the National Futures Association for its
       invaluable assistance throughout the investigation of this matter.
      The following Division of Enforcement staff members are responsible for this
       action: Lael Campbell, Tracey Wingate, John Dunfee, Paul Hayeck and Joan
       Manley.
      * * * * * * * * * * * * * *
      The CFTC encourages members of the public to bring to our attention any suspicious
       activities involving futures or commodity options, including matters involving
       foreign currency (forex) investments or suspicious Internet websites.
      You may contact the CFTC at 1-866-FON-CFTC (1-866-366-2382), visit us at
       our Customer Protection web page:
       (www.cftc.gov/cftc/cftccustomer.htm), or fill out our Internet Report Form identifying your concerns
       (www.cftc.gov/enf/enfform.htm).
      In addition, the CFTC publishes a series of Consumer Advisories at
       http://www.cftc.gov/cftc/cftccustomer.htm#advisory alerting the public to
       warning signs of possible fraudulent activity and offering precautions individuals
       should take before committing funds.
      # # # | Media Contacts
       Alan Sobba
       (202) 418-5080
       Dennis Holden
       (202) 418-5088
       CFTC Office of External Affairs, Washington, D.C.
      Staff Contact
       Joan Manley
       Deputy Director
       CFTC Division of Enforcement
       (202) 418-5356
      Related DocumentsComplaintOrderLetter to Investors