Paul M. Eustace was indicted on November 8, 2007, for two counts of commodities fraud and a superceding indictment was obtained against Eustace in the United States District Court, Eastern District of Pennsylvania, on May 6, 2010, for six counts of commodities fraud and five counts of wire fraud. These indictments stem from a scheme Eustace allegedly perpetrated to hide losses in excess of $200 million from investors in hedge funds that he operated and managed from 2002 through 2005. Eustace was apparently able to continue his alleged manipulations until July of 2005, when his scheme was discovered through regulatory inquiries. A federal arrest warrant was issued for Eustace on November 9, 2007.
Eustace is thought to be living in Ontario, Canada.
