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CALVARY FINANCIAL GROUP, LLC
CASE OUTCOME: PERMANENT BAR FROM NFA MEMBERSHIP
NFA ID:
0297789
Individuals Involved:
- HAMILTON, RICHARD L
- SULAIMAN HUSAIN
- LYNCH & COMPANY LLC
- NATIONAL COMMODITIES CORPORATION INC
- GREGORY DUANE ZIMMERMAN
On March 25, 2002, NFA's Business Conduct Committee ("BCC") issued a Complaint to Calvary Financial Group LLC ("Calvary"); Gregory D. Zimmerman ("Zimmerman"); Lynch & Company LLC ("Lynch"); Richard L. Hamilton ("Hamilton"); National Commodities Corporation, Inc. ("NCCI"); and Sulaiman Husain ("Husain"). The Complaint alleged that Calvary, Lynch, and Zimmerman violated NFA Compliance Rules 2-2(a), 2-4, and 2-8(a): churning customers' accounts, placing unauthorized trades in customers' accounts, and exercising discretion over customer accounts without having written authority to exercise such discretion and NCCI, as Calvary's guarantor is charged under NFA Compliance Rule 2-23 with these same violations. The Complaint also alleged that Calvary, Zimmerman, Lynch, and Hamilton violated NFA Compliance Rules 2-2(a), 2-29(a)(1) and (2): making deceptive, misleading, and high-pressured sales solicitations and NCCI, as Calvary's guarantor, is charged under NFA Compliance Rule 2-23, with these same violations. In addition, the Complaint alleged that Calvary and Zimmerman violated NFA Compliance Rule 2-30(a): failing to give appropriate risk disclosure to customers and NCCI, as Calvary's guarantor, is charged under NFA Compliance Rule 2-23, with these same violations. Further, the Complaint alleged that Calvary violated NFA Compliance Rules 2-29(c)(1) and (4): using hypothetical results when there were three months of actual results and without including the required hypothetical disclaimer statement and NCCI, as Calvary's guarantor, is charged, under NFA Compliance Rule 2-23, with these same violations. Finally, the Complaint alleged that NCCI and Husain violated NFA Compliance Rule 2-9: failing to supervise a GIB. Decision:
On November 13, 2002, NFA's Hearing Panel ("Panel") issued a Decision to Calvary, Lynch and Zimmerman accepting their settlement offer in which they neither admitted nor denied the allegations of the Complaint. The Panel ordered that Calvary shall never again reapply for NFA membership or CFTC registration in any capacity. The Panel also ordered that Lynch shall withdraw permanently from NFA membership, effective as of the date of the Decision, and never reapply for NFA membership at any time in the future. Finally, the Panel ordered that Zimmerman shall withdraw from NFA membership, associate membership and principal status for 3 years, effective as of the date of the Decision. After 3 years, Zimmerman may petition the Panel to reduce the six-year membership bar, in which case, Zimmerman will have the burden of showing that good cause exists for reducing the bar; the decision to grant or deny any such petition will be at the Panel's sole discretion; and the Panel's decision will be final. This Decision becomes effective November 29, 2002. DECISION - HAMILTON:
On December 2, 2002, the Panel issued a Decision to Hamilton accepting his settlement offer in which he neither admitted nor denied the allegations of the Complaint. The Panel ordered that Hamilton withdraw from NFA associate membership and not reapply for NFA membership or associate membership or act as a principal of an NFA Member for a period of three months, commencing on the effective date of the Decision. This Decision becomes effective December 17, 2002. DECISION - NCCI and HUSAIN:
On December 2, 2002, the Panel issued a Decision to NCCI and Husain accepting their settlement offer in which they neither admitted nor denied the allegations of the Complaint. The Panel ordered NCCI and Husain to jointly and severally pay a $50,000 fine in 10 equal monthly payments due on the first day of each month, beginning January 1, 2003. The Panel also ordered that the charge of failure to supervise against NCCI and Husain shall remain pending for six months from the date of the issuance of the Decision, subject to conditions. Finally, the Panel ordered NCCI to perform supervisory measures which are required by NFA Compliance Rule 2-9. This Decision becomes effective December 17, 2002.
Source: National Futures Association
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