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FUTURES FIRST OF ARIZONA, INC
CASE OUTCOME: PERMANENT WITHDRAWAL FROM NFA MEMBERSHIP
NFA ID:
0195792
Complaint:
ON APRIL 28, 1989, THE WESTERN REGIONAL BUSINESS CONDUCT COMMITTEE ISSUED A COMPLAINT TO FUTURES FIRST OF ARIZONA, INC. ("FFA"). THE COMPLAINT ALLEGES THAT FFA USED PROMOTIONAL MATERIAL WHICH IS LIKELY TO DECEIVE THE PUBLIC, IS MATERIALLY MISLEADING AND WHICH REFERS TO HYPOTHETICAL RESULTS WITHOUT THE STATEMENT REQUIRED BY CFTC REGULATION 4.41(B)(1) IN VIOLATION OF NFA COMPLI- ANCE RULES 2-29(B)(1), 2-29(B)(2) AND 2-29(B)(4), THAT FFA USED PROMOTIONAL MATERIAL WHICH MENTIONED THE POSSIBILITY OF PROFIT WITHOUT AN EQUALLY PROMINENT STATEMENT OF THE RISK OF LOSS IN VIOLATION OF NFA COMPLIANCE RULE 2-29(B)(3), AND USED PROMOTIONAL MATERIAL WHICH WAS MATERIALLY MISLEADING AND INCLUDED RATES OF RETURN, THE ACCURACY OF WHICH COULD NOT BE DEMONSTRATED, AND FAILED TO MAINTAIN A RECORD OF THE REVIEW AND APPROVAL OF ALL PROMOTIONAL MATERIAL IN VIOLATION OF NFA COMPLIANCE RULES 2-29(B)(2) AND 2-29(B)(6). THE COMPLAINT FURTHER ALLEGES THAT FFA FAILED TO IDENTIFY STATEMENTS OF OPINION AND FAILED TO FILE ALL PROMOTIONAL MATERIAL WITH NFA AFTER ITS FIRST USE IN VIOLATION OF NFA COMPLI- ANCE RULES 2-29(C) AND 2-29(F), FAILED TO ADOPT AND ENFORCE WRITTEN PROCEDURES TO SUPERVISE ITS ASSOCIATES AND EMPLOYEES FOR COMPLIANCE WITH COMPLIANCE RULE 2-29 AND FAILED TO MAINTAIN COPIES OF ALL PROMOTIONAL MATERIAL WITH A RECORD OF THE REVIEW AND APPROVAL IN VIOLATION OF NFA COMPLIANCE RULES 2-29(D) AND 2-29(E), PERMITTED A PERSON TO ACT IN A CAPACITY REQUIRING REGISTRATION WITHOUT THE BENEFIT OF PROPER REGISTRATION IN VIOLATION OF NFA BYLAW 301(B), AND FAILED TO PREPARE AND MAINTAIN MONTHLY NET CAPITAL COMPUTATIONS AND FAILED TO MAINTAIN MINIMUM NET CAPITAL REQUIRE- MENTS FOR AN IB IN VIOLATION OF NFA COMPLIANCE RULE 2-10 AND NFA FINANCIAL REQUIREMENTS SECTION 9. Decision:
ON APRIL 10, 1990, THE WESTERN COMMITTEE ISSUED A DECISION IN WHICH IT ACCEPTED FFA'S SETTLEMENT OFFER. THE DECISION DIRECTED FFA TO WITHDRAW FROM NFA MEMBERSHIP AND TO NEVER REAPPLY IN THE FUTURE.
Source: National Futures Association
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