A Ft. Lauderdale, Florida federal judge has fined an introducing broker and its compliance officer and enjoined them from trading commodities for making false statements to the National Futures Association about doing business with an unregistered individual.
The order by Judge James I. Cohn in favor of the Commodity Futures Trading Commission highlights the obligation of NFA registrants to conduct due diligence on their customers and business relationships, and truthfully respond to and otherwise fully cooperate with the NFA in its oversight of the industry.
The message is particularly timely because NFA registrants must affirm by February 28 that they are in compliance with NFA Rule 1101, which prohibits doing business with unregistered persons or entities.
Judge Cohn ordered the broker, Angus Jackson, Inc., and Martin Harold Bedick, its sole control person, to jointly and severally disgorge $955,000 in ill-gotten gains and to pay a fine of twice that amount for violating Section
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