PREET BHARARA, the United States Attorney for the Southern District of New York, and JANICE K. FEDARCYK, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced the arrest yesterday of JOSHUA WALLACE, a principal of System Capital, LLC ("System Capital"), a commodity trading advisor, on charges of fraudulently soliciting clients and investor money by misrepresenting, among other things, System Capital’s past performance and by inflating System Capital’s assets under management. According to the Complaint unsealed yesterday in Manhattan federal court: In 2009, WALLACE met representatives of a Third Party Marketer located in Chicago (the "Third Party Marketer") and told the Third Party Marketer that he traded in e-minis, which are futures contracts that can be traded electronically on the Chicago Mercantile Exchange and are based on the S&P 500 index. WALLACE falsely stated that he had at leas...