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Statement on Jury’s Verdict in Trial of Edward S. Walczak

Gurbir Grewal photo

Gurbir S. Grewal
Director, Division of Enforcement

April 18, 2022

After a five-day trial, a jury serving in the United States District Court for the Western District of Wisconsin found Edward S. Walczak liable for negligence-based securities fraud for misrepresenting to investors how he would manage risk in the Catalyst Hedged Futures Strategy Fund.

Statement of SEC Division of Enforcement Director Gurbir S. Grewal:

“Fund portfolio managers like Walczak have a duty to tell the truth about the investments they manage, and when they fall short as the jury found in this case, we’ll hold them accountable because that’s what investor protection requires. In this case, we were joined in that effort by the CFTC and we thank them for their assistance and cooperation.”

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More information:

The SEC filed its civil complaint on January 27, 2020:

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