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Opalesque Futures Intelligence

Regulatory Actions:

Monday, July 02, 2012

NFA takes emergency enforcement action against Florida commodity pool operator and forex firm, Altamont Global Partners and its principal

June 22, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action againstAltamont Global Partners LLC (AGP) and its principal and associated person (AP), John G. Wilkins. AGP is a commodity pool operator NFA Member and forex firm located in Longwood, Florida and operates the Matterhorn Fund LLC (Matterhorn Fund) and McKinley Fund LLC (McKinley Fund).

NFA has taken the Member Responsibility Action and Associate Responsibility Action because NFA has determined that AGP, Wilkins and two other individuals affiliated with AGP, Philip Leon and Paul Rangel, have likely misappropriated approximately $3.55 million of the funds invested in the Matterhorn and McKinley Funds (Funds). In addition, Wilkins and AGP lied to NFA about the value of the assets in these Funds and also provided false pool statements to the Funds' participants. The statements concealed the fact that a substantial portion of participants' investments had been misappropriated and/or lost through trading. Wilkins admitted to NFA that AGP provided pool participants with false, inflated investment value information which showed purported assets in excess of $17 million. NFA believes that investors are unaware that the true value of their investments may actually be under $3 million.

The action, effective immediately, prohibits AGP, Wilkins, or any owners or agents of AGP from soliciting or accepting any funds from or placing trades for customers in the McKinley, Matterhorn and and the Binary Strategy One Fund LLC (also operated by AGP). AGP, Wilkins, or any owners and agents of AGP are also prohibited from disbursing or transferring any funds of AGP or customers without prior approval from NFA. AGP and Wilkins 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).

NFA permanently bars Boulder, Colorado futures firms, Arjent Capital Advisors LLC and Chicago Trading Managers LLC; bars Spencer K. Montgomery, the firms principal, for three years

June 21, Chicago - National Futures Association (NFA) has permanently barred Arjent Capital Advisors LLC (ACA), a commodity pool operator, and Chicago Trading Managers LLC (CTM), a commodity pool operator and commodity trading advisor, located in Boulder, Colorado. NFA also barred Spencer K. Montgomery, the firms' principal, from NFA membership for three years. The Decision, issued by NFA's Hearing Panel, is based on a Complaint filed on March 12, 2012 and a settlement offer submitted by ACA, CTM and Montgomery.

The Panel found that ACA, CTM and Montgomery failed to observe high standards of commercial honor and just and equitable principles of trade while operating their pools and that they also willfully made false reports to customers in that they provided their customers with false trading statements which concealed negative capital balances in the pools' trading accounts. In addition, the Panel found ACA and CTM failed to file an exemption notice, a disclosure document or annual financial statement for the pools with NFA and failed to furnish participants in the pool with a financial statement.

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

NFA permanently bars McLean, Virginia futures firm, SureInvestment LLC and its principals, Benjamin Wilson and Crosby Wood

June 20, Chicago - National Futures Association (NFA) has permanently barred SureInvestment LLC (Sure), a commodity pool operator and commodity trading advisor located in McLean, Virginia. NFA also permanently barred Benjamin Wilson, a principal and associated person of Sure. The Decision was rendered by NFA's Business Conduct Committee (BCC) on June 13.

On September 2, 2011, NFA took a Member Responsibility Action against Sure (see previous press release). NFA's BCC subsequently issued a Complaint against Sure and Wilson on April 13, 2012.

The Complaint alleged that Sure failed to disclose to participants of a commodity pool that it operated, or to capital investors, the firm's financial condition after the pool incurred a debit balance and sustained huge trading losses. The Complaint also alleged that the firm provided misleading information to NFA and - together with firm personnel - misappropriated customer funds. In addition, the Complaint alleged that Sure failed to maintain required books and records and that Sure and Wilson failed to update registration forms to disclose that Wilson was the subject of a lawsuit by the Financial Services Authority in the U.K., in which he was charged with misappropriating funds from customers. Finally, the Complaint alleged that Sure and Wilson failed to adequately supervise the activities of the firm.

With the issuance of the Complaint, Sure and Wilson were required to file an Answer with NFA within 30 days. Sure and Wilson failed to respond to the Complaint in any way and NFA subsequently sent another copy of the Complaint to Sure and Wilson. When Sure and Wilson again failed to respond to the Complaint, the BCC ruled that Sure and Wilson committed each and every violation alleged against them in the Complaint and permanently barred them from NFA membership.

Sure and Wilson may appeal the Decision to the Appeals Committee by filing a written notice of appeal within 15 days of the date of the Decision.

The complete text of the Decision is available on NFA's website (www.nfa.futures.org).

In a separate Decision, issued on June 18, NFA's BCC permanently barred Crosby Wood (Wood), a principal and associated person of Sure, from NFA membership. Wood was named in the same MRA issued against Sure on September 2, 2011and the Complaint issued against Sure and Wilson on April 13, 2012. However, unlike Sure and Wilson, Wood submitted an Answer and an Offer of Settlement in response to the Complaint. The BCC subsequently accepted the settlement offer and found Wood violated the NFA Compliance Rules alleged in the Complaint, including providing NFA with misleading information and failing to cooperate promptly and fully with NFA during the course of its audit and investigation of the firm. The Complaint also alleged that Wood failed to observe high standards of commercial honor and just and equitable principles of trade.

The complete text of the Decision is available on NFA's website (www.nfa.futures.org).

NFA permanently bars Auburn, Alabama futures firm, TS Capital Management

June 18, Chicago - National Futures Association (NFA) has permanently barred TS Capital Management LLC (TS Capital), a commodity pool operator located in Auburn, Alabama. The Decision was rendered by NFA's Business Conduct Committee (BCC).

On October 26, 2011, NFA issued a Member Responsibility Action against TS Capital Management (see previous press release). NFA's BCC subsequently issued a Complaint against TS Capital on April 2, 2012, alleging that TS Capital provided false and misleading information to NFA concerning the operations of the firm and its affiliates and about numerous transactions, including bank deposits and wire transfer activity and the source of the funds for deposits. In addition, the Complaint alleged that TS Capital failed to cooperate with NFA during the examination and investigation of the firm by failing to produce records that NFA had requested for TS Capital, the firm's affiliates and their exempt pools. Finally, the Complaint alleged that TS Capital was required to list John Stroud, the firm's chief executive officer and co-owner of the firm, as a principal.

With the issuance of the Complaint, TS Capital was required to file an Answer with NFA within 30 days. TS Capital failed to respond to the Complaint in any way and NFA subsequently sent another copy of the Complaint to the firm. To date, TS Capital has neither filed an Answer to the Complaint nor otherwise responded to it. As a result, the BCC ruled that TS Capital had deemed to have admitted the facts and legal conclusions alleged in the Complaint and permanently barred the firm from NFA membership.

TS Capital may appeal the 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 Decision can be viewed on NFA's website (www.nfa.futures.org).



 
This article was published in Opalesque Futures Intelligence.
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