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FIRST INTERNATIONAL COMMODITY GROUP, INC
CASE OUTCOME: PERMANENT BAR FROM NFA MEMBERSHIP
NFA ID:
0294760
Complaint:
On September 9, 2003, NFA's Business Conduct Committee ("BCC") issued a Complaint to First International Commodity Group, Inc. ("FICG"), Kenneth B. Elias ("Elias") and David W. Ooms ("Ooms"). The Complaint alleges that FICG and Ooms made communications with the public which operate as a fraud or deceit, in violation of NFA Compliance Rules 2-2(a) and 2-29(a)(1). The Complaint also alleges that FICG and Elias provided misleading information to NFA, in violation of NFA Compliance Rule 2-2(f). Further, the Complaint alleges that FICG and Elias failed to diligently supervise employees and agents in the conduct of their commodity futures activities, in violation of NFA Compliance Rule 2-9. Finally, the Complaint alleges that FICG failed to meet its minimum adjusted net capital requirement, in violation of NFA Financial Requirements Section 5. Decision:
DECISION - FICG AND ELIAS: On June 15, 2004, a designated Panel of NFA's Hearing Committee ("Panel")issued a Decision to FICG and Elias accepting their settlement offer wherein they consented to findings that they committed the violations alleged against them in the Complaint. The Panel ordered that FICG never again reapply for NFA membership, in any capacity. The Panel ordered that Elias not reapply for NFA membership or associate membership for six months and will pay a $5,000 fine payable if and when he reapplies for NFA membership or associate membership. If and when Elias again becomes an NFA Member or Associate, he will tape record all of his conversations with both existing and potential customers, for six months (in calculating the six-month period, only those periods during which Elias is an Associate of an NFA Member, and actively soliciting customers, will be counted); retain each tape for five years; maintain a daily log of his conversations with existing and potential customers, and make the tapes available to NFA upon request. The Panel also ordered that Elias not act as a principal of an NFA Member, or in a supervisory capacity for one year. If and when Elias again becomes the principal of an NFA Member, he will cause all APs of such Member to tape record all of their solicitaitons with existing and potential customers for six months, commencing on the date Elias becomes a principal of the Member (only those periods during which Elias is a principal of the Member and the Member's APs are actively soliciting customers will be counted toward the six-month period); retain each tape for five years from the date the tape is created; and maintain a daily log of their conversations with existing and potential customers and make the tapes available to NFA upon request. The Panel further ordered that Elias must submit all promotional material used by him or any firm of which he is a principal (including sales scripts used either for training or solicitation purposes) to NFA, for one year and will not use such promotional material until first approved by NFA. Finally, the Panel ordered that Elias will submit to NFA, at its request, all customer complaints made against Elias or any firm of which he is a principal for one year. This Decision becomes effective on June 30, 2004.
Source: National Futures Association
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