The Receiver Who Charged More Than the Alleged Harm

When the CFTC obtained its ex parte asset freeze on May 11, 2022, it told the court that investors needed protection. Eleven minutes later, Judge Rowland agreed. A receiver was appointed — KSR Group, led by Kevin Rowe — without the judge having reviewed his qualifications. "I trust that Mr. Kopecky has done this before," she said, confusing the names of the principals.

Four years later, that trust has cost the estate over $451,112 in receiver fees and counting.

Here is the number that makes this unconscionable: according to the CFTC's own forensic expert, StoneTurn Group, a Ponzi scheme was mathematically impossible in this fund. Every one of the 69 investors who put money into Rose City Income Fund exited with a profit. The mean annualized return was 303%. Not a single investor lost a dollar.

So what, precisely, is the receiver protecting?

The receivership was justified on the premise that investors had been harmed. The premise was false. The CFTC's own hired expert confirmed it was false. And yet the receivership continues, the fees accumulate, and the assets that investors voluntarily committed to a fund that made them money are being consumed by a court-appointed administrator whose existence was predicated on a lie.

This is not a technicality. This is the core of the injustice. A receiver exists to protect victims. When there are no victims — when the CFTC's own expert says there are no victims — the receiver is not a protector. The receiver is the harm.

The 32 investors who filed formal objection letters with the court (Dkt. 204–243) understood this. They did not ask for protection. They asked the court to stop the liquidation. They wrote, in their own words, that they had made money, that they trusted the fund manager, and that the CFTC's intervention was destroying the very value they had earned.

The court ignored them. The receiver kept billing.

$451,112 in fees. Zero investor losses. One question: who is the CFTC protecting?

Read the full receiver fee records and investor objection letters at samikkurty.com.