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618 INVESTMENT GROUP, INC
CASE OUTCOME: 618 PERMANENTLY WITHDRAWS FROM NFA MEMBERSHIP
NFA ID:
0239211
Individuals Involved:
- SAUNDERS, CYNTHIA
- SAUNDERS, JOHN GILBERT
- SAXE, ROBERT JEFFERSON III
ON APRIL 21, 1994, NFA'S BUSINESS CONDUCT COMMITTEE ("BCC") ISSUED A COMPLAINT TO 618 INVESTMENT GROUP, INC.("618") AND ROBERT J. SAXE, III ("SAXE"). THE COMPLAINT ALLEGED THAT 618 EMPLOYED FRAUDULENT, DECEPTIVE AND UNBALANCED SALES SOLICITATIONS AND ENGAGED IN UNAUTHORIZED TRADING IN VIOLATION OF NFA COMPLIANCE RULES 2-2(a), 2-29(a)(1), AND 2-29(b)(1), (2), AND (3). THE COMPLAINT ALSO ALLEGED THAT 618 AND SAXE USED PROMOTIONAL MATERIAL THAT WAS DECEPTIVE, MISLEADING, UNBALANCED AND REFERRED TO HYPOTHETICAL TRADING RESULTS WITHOUT INCLUDING THE HYPOTHETICAL DISCLAIMER REQUIRED BY COMMODITY FUTURES TRADING COMMISSION ("CFTC") REGULATIONS. BY REASON OF THESE ACTS AND OMISSIONS, 618 AND SAXE WERE CHARGED WITH VIOLATIONS OF NFA COMPLIANCE RULES 2-2(a), 2-29(b)(1), (2), (3), and (4). THE COMPLAINT FURTHER CHARGED THAT 618 AND SAXE PERMITTED JOHN SAUNDERS TO SOLICIT CUSTOMERS ON BEHALF OF 618 WITHOUT BEING REGISTERED AS AN ASSOCIATED PERSON ("AP") WITH THE CFTC OR AN NFA ASSOCIATE IN APPARENT VIOLATION OF NFA BYLAW 301(b). THE COMPLAINT ALSO ALLEGED THAT SAXE PROVIDED FALSE INFORMATION TO NFA IN APPARENT VIOLATION OF NFA COMPLIANCE RULE 2-2(f). LASTLY, THE COMPLAINT ALLEGED THAT 618 AND SAXE FAILED TO OBSERVE HIGH STANDARDS OF COMMERCIAL HONOR AND JUST AND EQUITABLE PRINCIPLES OF TRADE AND FAILED TO DILIGENTLY SUPERVISE THE ACTIVITIES OF 618'S AGENTS AND EMPLOYEES IN VIOLATION OF NFA COMPLIANCE RULES 2-4 AND 2-9. JOHN SAUNDERS AND CYNTHIA SAUNDERS, WHO ARE NOT NFA MEMBERS OR ASSOCIATES, WERE ALLEGED TO HAVE BEEN THE CAUSE OF 618'S VIOLATION OF NFA COMPLIANCE RULE 2-4. Decision:
ON APRIL 21, 1994, THE BCC ISSUED A DECISION TO 618 AND SAXE ACCEPTING THEIR OFFERS OF SETTLEMENT IN WHICH THEY NEITHER ADMITTED NOR DENIED THE ALLEGATIONS OF THE COMPLAINT. THE BCC ORDERED THAT 618 SHALL PERMANENTLY WITHDRAW FROM NFA MEMBERSHIP, AND THAT SAXE SHALL WITHDRAW FROM NFA MEMBERSHIP AND NOT REAPPLY FOR NFA MEMBER- SHIP OR ASSOCIATE MEMBERSHIP FOR TEN YEARS. THE BCC ALSO ORDERED THAT JOHN AND CYNTHIA SAUNDERS, WHO ARE NAMED FOR CAUSE IN THE COMPLAINT AND WHO ALSO SUBMITTED SETTLEMENT OFFERS, SHALL NEVER APPLY FOR NFA MEMBERSHIP OR ACT AS PRINCIPALS OF AN NFA MEMBER, OR ACT IN ANY CAPACITY REQUIRING REGISTRATION AS AN NFA MEMBER OR ASSOCIATE. THIS DECISION BECOMES EFFECTIVE ON MAY 2, 1994. Commodity Broker Online Comments:
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