In the Matter of Geluk Capital Management Ltd., et al.

Admin. Proc. File No. 3-20906

On June 24, 2022, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Geluk Capital Management Ltd. (“GCM”) and Douglas Gerald Fathers (“Fathers”) (collectively, the “Respondents”). In the Order, the Commission found that from January through December 2018, GCM and Fathers represented to investors and prospective investors that the Geluk Global Fund Limited SAC (“Geluk Fund”) had its own proprietary trading strategy and risk controls that had resulted in a multi-year track record of positive performance. However, the Geluk Fund had none of these things and was instead sending investor money to a third-party manager. In the Order, the Commission also found that GCM and Fathers also charged the Geluk Fund fees in a manner that was inconsistent with fund governing documents. The Commission ordered the Respondents to pay $29,081.00 in disgorgement, $3,607.00 in prejudgment interest, and a $60,000.00 civil money penalty, for a total of $92,688.00, to the Commission, pursuant to the payment plan detailed therein. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-11077.

The Fair Fund consists of the $29,081.00 paid to date by the Respondents. Any additional funds collected from the Respondents, pursuant to the Order, will be added to the Fair Fund. The Fair Fund has been deposited in a Commission-designed account at the U.S. Department of the Treasury, and any interest accrued will be added to the Fair Fund.

On July 17, 2023, the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-97916.

On March 12, 2024, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The Proposed Plan proposes that Noel Gittens, a Commission employee, serve as the Fund Administrator to oversee the administration and distribution of the Fair Fund. The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-99720 and the Proposed Plan.

The Proposed Plan seeks to compensate investors harmed by the Respondent’s conduct described in the Commission’s Order. See Release No. 34-95158. The harmed investors will be compensated for performance fees paid to the Respondents for the management of funds in the Geluk Global Fund Limited SAC, and related investment losses suffered as a result of the Respondents’ fraudulent conduct between January 1, 2018, and December 31, 2018, inclusive.

On May 10, 2024 the Commission issued an order approving the Proposed Plan and simultaneously posted the approved plan of distribution (the “Plan”).  See the Commission’s Order:  Release No. 34-100100 and the Plan.  

On June 18, 2024 he Commission issued an order approving the disbursement of $23,831.20 from the Fair Fund for distribution to eligible investors.  See the Commission’s Order: Release No. 34-100379.

For more information, please contact the Fund Administrator:

Noel Gittens
Telephone Number: (202) 551-4830
Website: https://www.sec.gov/enforce/notices-and-orders-pertaining-to-disgorgement-and-fair-funds#geluk-fathers
Email: GittensN@SEC.GOV