Commodity Brokers Online - Custom Search
|
Enter Search Keyword(s):
Custom Search for 1,000 + Commodity Webpages. All Sites have been Reviewed and Categorized by
CommodityFuturesSearch.com
|
Commodity Trading Resources
|
|
HAWAII INVESTMENT NETWORK
CASE OUTCOME: PERMANENT BAR FROM NFA MEMBERSHIP
NFA ID:
0229904
Complaint:
ON JUNE 27, 1991, NFA'S WESTERN REGIONAL BUSINESS CONDUCT COMMITTEE ("WESTERN COMMITTEE") ISSUED A NINE-COUNT COMPLAINT TO KAI KAMAKANI McGEE ("KKM") AND HAWAII INVESTMENT NETWORK ("HIN"). THE COMPLAINT ALLEGES THAT KKM AND HIN CHEATED, DEFRAUDED OR DECEIVED OR ATTEMPTED TO CHEAT, DEFRAUD OR DECEIVE COMMODITY FUTURES CUSTOMERS IN VIOLATION OF NFA COMPLIANCE RULES 2-2(a) AND 2-29(a)(1). THE COMPLAINT ALSO ALLEGES THAT HIN CONVERTED CUSTOMER FUNDS IN VIOLATION OF NFA COMPLIANCE RULES 2-2(a) AND 2-2(h) AND WILLFULLY SUBMITTED MATERIALLY FALSE OR MISLEADING INFORMATION TO NFA IN VIOLATION OF NFA COMPLIANCE RULE 2-2(f). THE COMPLAINT FURTHER ALLEGES THAT HIN USED PROMOTIONAL MATERIAL WHICH WAS LIKELY TO DECEIVE THE PUBLIC, CONTAINED MATERIAL MISSTATEMENTS OF FACT WHICH MADE THE PROMOTIONAL MATERIAL MISLEADING; AND WHICH MENTIONED THE POSSIBILITY OF PROFIT WITHOUT AN EQUALLY PROMINENT STATEMENT OF THE RISK OF LOSS IN VIOLATION OF NFA COMPLIANCE RULES 2-29(b)(1), 2-29(b)(2) AND 2-29(b)(3). THE COMPLAINT ALSO ALLEGES THAT HIN AND KKM VIOLATED COMMODITY FUTURES TRADING COMMISSION REGULATIONS GOVERNING COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS BY COMMINGLING POOL FUNDS IN VIOLATION OF NFA COMPLIANCE RULE 2-13. THE COMPLAINT FURTHER ALLEGES THAT HIN FAILED TO MAKE THE REQUIRED FILING REGARDING ITS PRINCIPALS IN VIOLATION OF NFA REGISTRATION RULES 205 AND 208(a)(3) AND FAILED TO MAINTAIN THE REQUIRED BOOKS AND RECORDS, FAILED TO GIVE TELEGRAPHIC NOTICE OF ITS FAILURE TO MAINTAIN ADJUSTED NET CAPITAL OR REQUIRED BOOKS AND RECORDS AND MADE A PROHIBITED TRANSACTION IN VIOLATION OF NFA FINANCIAL REQUIREMENTS SECTION 9. THE COMPLAINT ALSO ALLEGES THAT KKM CONDUCTED BUSINESS WITH AN UNREGISTERED MEMBER IN VIOLATION OF NFA BYLAW 1101. FINALLY, THE COMPLAINT ALLEGES THAT HIN AND KKM FAILED TO UPHOLD HIGH STANDARDS OF COMMERCIAL HONOR AND JUST AND EQUITABLE PRINCIPLES OF TRADE IN VIOLATION OF NFA COMPLIANCE RULE 2-4. Decision:
ON SEPTEMBER 9, 1994, A DESIGNATED PANEL OF NFA'S HEARING COM- MITTEE ISSUED A DEFAULT DECISION TO HIN. THE HEARING COMMITTEE FOUND THAT THE VIOLATIONS COMMITTED BY HIN ARE VERY SERIOUS AND PERMANENTLY BARRED THE FIRM FROM NFA MEMBERSHIP. THIS DECISION BECOMES EFFECTIVE SEPTEMBER 26, 1994.
Source: National Futures Association
Visit:
|