The former CEO of a Miami investment firm has admitted to participating in a commodities fraud conspiracy involving cryptocurrency futures contracts and now faces up to five years in prison, Cointelegraph reported. The U.S. Department of Justice said in an Oct. 12 statement that Peter Kambolin, the former CEO of Systematic Alpha Management (SAM) LLC, implemented a "cherry-grabbing" scheme in which he positioned his company as offering algorithmic trading strategies involving futures contracts, including cryptocurrencies and commodities. However, Kambolin misrepresented to investors that his fund involved trading in cryptocurrency futures and foreign exchange futures, when in fact, about half of Kambolin's trades in each trading pool involved stock index futures contracts. According to the U.S. Department of Justice, Kambolin defrauded investors in the United States and abroad by depriving investors of profitable trades and then used the proceeds to pay for his own personal expenses, including rent on a beachfront apartment. The proceeds from his scheme were transferred to foreign bank accounts controlled by co-conspirators in Belarus and the Dominican Republic. After pleading guilty, Kambolin now faces up to five years in prison. His sentencing hearing will be held at an undisclosed date in the future.