Tagged: NFA COURT CASES

FOREX WARNING BLOG- do u want me to keep writing it? is it helping anyone?

I feel like no one cares. Like I’m wasting my time.

If you want me to keep going than please say so.

My whole goal is to try protect people from getting scammed by the whole change in the FOREX market from real to simulated. While 9 thousand people have visited my blog- most come to try put advertising in the comment sections.

I’ve had maybe 25 real comments. Is that all the real readers I’ve had?

If this blog has helped you- please let me know, Gathering the information takes a lot of time and is pointless if no one is making use of it.

COMMENT IF YOU WANT THIS BLOG TO BE CONTINUED….

CFTC makes $463 MILLION in 5 mos in fines while VICTIMS only get partial restitution.

The CFTC is a private agency that acts as industry regulators. They file actions against violators and collect money for the following 5 purposes-

  • restitution
  • loan payoff
  • civil penalties
  • fines
  • sanctions

Restitution and loan payoffs get paid out

The penalties, fines, and sanctions are kept by them.  I added up how much of this category of money they collected from Jan , 2013 to May 31, 2013 – a total of 5 months.

TOTAL MONEY COLLECTED FOR FINES  $462,907,959.00

THAT’S JUST SHY OF $463 MILLION in 5 months!  (can you imagine their pay checks!)

463 million that means they gross over 1 BILLION a year. Operating costs can’t justify this level of GREED.

At the same time- victims are getting shorted in restitution. The shortage is being taken by the CFTC. They often pay themselves equal to the victims-

This isn’t like collecting insurance money from an accident! Its acceptable for the lawyers to keep half because the money is being paid for suffering- it’s not a repayment of money lost. The CFTC is acting like its ok to short people of money that was stolen from them! This isn’t ok.

PROOF:  

Over and over cases read like this:

_______________________________________________________________________________________________

  • funds involving at least $22.5 million.
  • pay restitution of $11,437,573 to defrauded customers.
  • civil monetary penalty of over $11.4 million

Customers lost 22.5 million but get back only half!  WHY? Because the CFTC TOOK THE OTHER 11.4 million for themselves! This is just wrong!!!

(http://www.cftc.gov/PressRoom/PressReleases/pr6590-13)

______________________________________________________________________________________________

  • accepted more than $4.7 million from retail public customers
  • restitution of approximately $3.2 million to defrauded customers
  • a $1.5 million civil monetary penalty.

So why do the victims get shorted by 1.5 million ? Why does the CFTC get to take the 1.5 million that would have paid them back in full?  This is unjust!

(http://www.cftc.gov/PressRoom/PressReleases/pr6653-13)

_____________________________________________________________________________________

  • solicited more than $1.3 million
  • pay $1,146,000 in restitution to their defrauded customers
  • and a $1,337,000 civil monetary penalty

That means customers were shorted by 154k while the CFTC kept 1.3 million. How is this acceptable? case link  (http://www.cftc.gov/PressRoom/PressReleases/pr6690-13)

July 19, 2013 NFA permanently bars Sacramento, California commodity trading advisor ABL Traders Trading Group, sanctions principal, Abdul Latona

copied from the NFA website

resource link: https://www.nfa.futures.org/news/newsRel.asp?ArticleID=4261

 

_____________________________________

For Immediate Release
July 19, 2013

For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org

NFA permanently bars Sacramento, California commodity trading advisor ABL Traders Trading Group and sanctions its principal, Abdul Latona

July 19, Chicago – National Futures Association (NFA) has permanently barred ABL Traders Trading Group (ABL), a commodity trading advisor Member of NFA located in Sacramento, California, from NFA membership. NFA has also permanently barred ABL’s principal, Abdul Latona (Latona) from acting as a commodity trading advisor and from managing or directing any customer accounts. In addition, Latona is suspended from NFA membership, associate membership and from acting as a principal of an NFA Member for a period of seven years. The Decision, issued by a designated panel (Panel) of NFA’s Hearing Committee, is based on a Complaint filed against ABL and Latona on November 6, 2012, and a hearing held on March 20, 2013.

The Panel found that ABL and Latona provided false and misleading information to NFA. In particular, the Panel found that Latona included untrue information in the disclosure documents he submitted to NFA on behalf of ABL; misrepresented the truth to NFA when he told NFA staff that he never held any powers of attorney over customer trading accounts; and misrepresented the truth to NFA when he told NFA staff that he did not have any other proprietary trading accounts other than the one identified in ABL’s disclosure document.

If, after the conclusion of Latona’s seven-year suspension, Latona applies for NFA membership or to be a principal of an NFA Member firm, then he must pay a fine of $40,000 within 30 days of the date on which he is granted NFA membership or principal status.

ABL and Latona may appeal the Panel’s Decision to NFA’s Appeals Committee by filing a written notice of appeal within 15 days of the date of the Decision.

The complete text of the Complaint and Decision can be viewed on NFA’s website (www.nfa.futures.org).

June 07, 2013 NFA takes emergency enforcement action against New York firm SK Madison, Michael Seward who cannot account for at least $900,000 in SK Pool fund

copied from the nfa website

resource link  http://www.nfa.futures.org/NFA-regulation/regulationNewsRel.asp?ArticleID=4237

_________________________________________________________

For Immediate Release
June 07, 2013

NFA takes emergency enforcement action against New York firm SK Madison, LLC and its sole principal, Michael Seward

June 7, Chicago – National Futures Association (NFA) announced today that it has taken an emergency enforcement action against SK Madison, LLC (SK Madison), an NFA Member commodity trading advisor (CTA) located in New York, N.Y., and Michael James Seward, the sole principal and associated person (AP) of SK Madison.

NFA has taken the Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) to protect customers of SK Madison since the firm and Seward cannot account for at least $900,000 in the SK Madison Commodities LLC Fund’s (SK Pool) participants’ funds. NFA also has reason to believe that the SK Pool participants are unaware of the true value of the SK Pool. Additionally, SK Madison and Seward have been unable to produce any accounting records to explain or justify the $900,000 it withdrew from the SK Pool’s bank account, leading NFA to conclude that Seward and other firm personnel have converted pool participant funds for their personal use. Finally, NFA believes that Seward deliberately misled NFA throughout the investigation regarding the amount contributed by participants to the SK Pool.

SK Madison and Seward, and any person acting on their behalf, are prohibited from soliciting or accepting any funds from customers or investors, soliciting investments for any managed accounts, pools or other investment vehicles. Additionally, SK Madison and Seward or anyone acting on their behalf, are prohibited from placing any trades except for liquidation or risk reducing trades. They also are prohibited from disbursing or transferring any funds of customers, investors, pools or pool participants without NFA’s prior approval.

The MRA/ARA will remain in effect until such time as SK Madison and Seward have demonstrated to the satisfaction of NFA that the firm is in complete compliance with all NFA Requirements.

SK Madison and Seward may request a hearing before NFA’s Hearing Committee.

The complete text of the MRA/ARA is available on NFA’s website (www.nfa.futures.org).

The following Compliance staff members are responsible for this case: Louis Berardocco (212-513-6030) and Joseph Bonnema (212-513-6031).

6/20/2013 NFA COMPLAINT DECISION: COURTNEY DAVID SMITH: CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS. $10,000 fine

copied from the nfa website

resource link http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0006615&case=12BCC00041&contrib=NFA

_________________________________________________

CASE DOCUMENTS http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=3461

COMPLAINT:

On December 4, 2012, NFA issued a Complaint charging Smith with using misleading promotional material and failing to produce records to NFA.

ANSWER:

On January 4, 2013, Smith filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On June 5, 2013, pursuant to a settlement offer submitted by Smith, he was ordered to pay a $10,000 fine. Smith was also ordered, for two years, to submit all futures and forex promotional material used by Smith – and any firm of which he is a principal – to NFA’s Advertising Regulatory Team (ART) promptly after first using such promotional material; provided, however, that, after one year, NFA’s ART may, in its sole discretion, discharge Smith – and any firm of which he is a principal – from any further obligation to submit such promotional material to NFA.

0006615 SMITH, COURTNEY DAVID • C.R.2-5 – FAILURE TO COOPERATE W/ NFA
• C.R.2-29(b)(1) – USE OF DECEPTIVE PROMO MATER.
• C.R.2-36(b)(1) – CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS
• C.R.2-29(b)(2) – MISSTATEMT/OMISSION OF FACT PROMP

June 12, 2013 NFA files COMPLAINT against Level III Management LLC, Level III Trading LLC and Bruce A. Gwyn

copied from nfa website

resource link http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0384343&case=13BCC00007&contrib=NFA

_______________________________

June 12, 2013
Level III Management LLC, Level III Trading LLC and Bruce A. Gwyn
NFA Case Number: 13BCC00007

Case Summary

LEVEL III MANAGEMENT LLC NFA 13BCC00007 NFA ID: 0384343

Respondent/Effective Date Summary
 NFA ID Respondent Effective Date
 0190801 GWYN, BRUCE ALEXANDER
 0384343 LEVEL III MANAGEMENT LLC
 0382256 LEVEL III TRADING LLC
Rule Summary
 NFA ID Respondent Rule Type
 0190801 GWYN, BRUCE ALEXANDER • C.R.2-4 – HIGH STDS. OF COMMERCIAL HONOR
• C.R.2-2(a) – CHEAT,FRAUD DECEIVE CUSTOMERS
• C.R.2-5 – FAILURE TO COOPERATE W/ NFA
• C.R.2-2(f) – FALSE INFORMATION TO NFA/AGENTS
 0384343 LEVEL III MANAGEMENT LLC • C.R.2-2(f) – FALSE INFORMATION TO NFA/AGENTS
• C.R.2-4 – HIGH STDS. OF COMMERCIAL HONOR
• C.R.2-13 – RECORDKEEPING FOR CPOS/CTAS
• C.R.2-5 – FAILURE TO COOPERATE W/ NFA
• C.R.2-46 – CPO QUARTERLY REPORTING REQUIREMENTS
• C.R.2-2(a) – CHEAT,FRAUD DECEIVE CUSTOMERS
 0382256 LEVEL III TRADING LLC • C.R.2-5 – FAILURE TO COOPERATE W/ NFA
Committee Summary
 NFA ID Respondent Committee
 0190801 GWYN, BRUCE ALEXANDER • BUSINESS CONDUCT COMMITTEE
 0384343 LEVEL III MANAGEMENT LLC • BUSINESS CONDUCT COMMITTEE
 0382256 LEVEL III TRADING LLC • BUSINESS CONDUCT COMMITTEE
Action Summary
 NFA ID Respondent Action Types
 0190801 GWYN, BRUCE ALEXANDER • GENERAL CONDUCT
• SALES PRACTICE
 0384343 LEVEL III MANAGEMENT LLC • SALES PRACTICE
• GENERAL CONDUCT
 0382256 LEVEL III TRADING LLC • GENERAL CONDUCT
Penalty/Event Summary
No penalties have been selected for this case.
Narrative Summary
Narrative for 0190801 – GWYN, BRUCE ALEXANDER
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**COMPLAINT:On June 12, 2013, NFA issued a Complaint charging L3M and Gwyn with willfully providing incomplete and misleading information to pool participants; failing to observe high standards of commercial honor and just and equitable principles of trade; and providing misleading information to NFA. The Complaint also charged L3M with failing to file a disclosure document or annual financial statement for the fund with NFA; failing to furnish participants in the fund with a financial statement; and failing to comply with CPO quarterly reporting requirements. Finally, the Complaint charged L3M, L3T and Gwyn with failing to cooperate with NFA.
Narrative for 0384343 – LEVEL III MANAGEMENT LLC
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**COMPLAINT:On June 12, 2013, NFA issued a Complaint charging L3M and Gwyn with willfully providing incomplete and misleading information to pool participants; failing to observe high standards of commercial honor and just and equitable principles of trade; and providing misleading information to NFA. The Complaint also charged L3M with failing to file a disclosure document or annual financial statement for the fund with NFA; failing to furnish participants in the fund with a financial statement; and failing to comply with CPO quarterly reporting requirements. Finally, the Complaint charged L3M, L3T and Gwyn with failing to cooperate with NFA.
Narrative for 0382256 – LEVEL III TRADING LLC
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**COMPLAINT:On June 12, 2013, NFA issued a Complaint charging L3M and Gwyn with willfully providing incomplete and misleading information to pool participants; failing to observe high standards of commercial honor and just and equitable principles of trade; and providing misleading information to NFA. The Complaint also charged L3M with failing to file a disclosure document or annual financial statement for the fund with NFA; failing to furnish participants in the fund with a financial statement; and failing to comply with CPO quarterly reporting requirements. Finally, the Complaint charged L3M, L3T and Gwyn with failing to cooperate with NFA.
Case Documents Summary
 NFA ID Respondent Document Type
 0190801 GWYN, BRUCE ALEXANDER COMPLAINT
 0384343 LEVEL III MANAGEMENT LLC COMPLAINT
 0382256 LEVEL III TRADING LLC COMPLAINT
NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the futures markets.

5/15/2013 NFA court action against: STONEHENGE ASSET MANAGEMENT LLC, MICHAEL, STEVEN ALAN: 50k fine

This information was copied from the NFA website

Resource link: http://www.nfa.futures.org/basicnet/Case.aspx?entityid=0411098&case=12BCC00029&contrib=NFA

________________________________________________________

Narrative for 0212526 – MICHAEL, STEVEN ALAN
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**COMPLAINT:

On October 15, 2012, NFA issued a Complaint charging Stonehenge and Michael with submitting misleading information to NFA about the status of the SD3 pool; failing to observe high standards of commercial honor and just and equitable principles of trade; using inflated figures in its promotional material; aggregating the funds of SD1’s different investment classes together in the SDMaster trading accounts thereby making the equity of participants in investment classes with higher funding levels available to margin the positions of participants in investment classes with lower funding levels; misallocating pool funds to pay Stonehenge and Michael’s expenses; making untimely reimbursements and redemptions; using misleading offering memorandum for SD1; and failing to supervise the overall operations of the firm. The Complaint charged Stonehenge with failing to obtain acknowledgements confirming that investors met the definition of a QEP; failing to provide a disclosure document to individuals it solicited to invest in the SD3 pool; submitting inaccurate PQRs; failing to prepare SD1 account statements in accordance with U.S. Generally Accepted Accounting Principles; and allowing SD1 to make a loan to Stonehenge. Michael is charged with failing to abide by the terms of the settlement and Decision in a 2010 BCC case.

ANSWER:

On January 2, 2013, Stonehenge and Michael filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On May 15, 2013, pursuant to a settlement offer submitted by Stonehenge and Michael, Stonehenge was ordered to engage an independent third-party administrator to provide full administrative services to any pool operated by Stonehenge, including, but not limited to, effecting redemptions and ensuring that expenses paid by any such pools are properly authorized and disclosed to participants. Also, Stonehenge and Michael are jointly and severally liable for the payment of $50,000 to NFA.

Narrative for 0411098 – STONEHENGE ASSET MANAGEMENT LLC
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**COMPLAINT:

On October 15, 2012, NFA issued a Complaint charging Stonehenge and Michael with submitting misleading information to NFA about the status of the SD3 pool; failing to observe high standards of commercial honor and just and equitable principles of trade; using inflated figures in its promotional material; aggregating the funds of SD1’s different investment classes together in the SDMaster trading accounts thereby making the equity of participants in investment classes with higher funding levels available to margin the positions of participants in investment classes with lower funding levels; misallocating pool funds to pay Stonehenge and Michael’s expenses; making untimely reimbursements and redemptions; using misleading offering memorandum for SD1; and failing to supervise the overall operations of the firm. The Complaint charged Stonehenge with failing to obtain acknowledgements confirming that investors met the definition of a QEP; failing to provide a disclosure document to individuals it solicited to invest in the SD3 pool; submitting inaccurate PQRs; failing to prepare SD1 account statements in accordance with U.S. Generally Accepted Accounting Principles; and allowing SD1 to make a loan to Stonehenge. Michael is charged with failing to abide by the terms of the settlement and Decision in a 2010 BCC case.

ANSWER:

On January 2, 2013, Stonehenge and Michael filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On May 15, 2013, pursuant to a settlement offer submitted by Stonehenge and Michael, Stonehenge was ordered to engage an independent third-party administrator to provide full administrative services to any pool operated by Stonehenge, including, but not limited to, effecting redemptions and ensuring that expenses paid by any such pools are properly authorized and disclosed to participants. Also, Stonehenge and Michael are jointly and severally liable for the payment of $50,000 to NFA.

05/15/2013