NFA ACTION: Frontline Financial

The NFA has ordered Frontline Financial and Frontline Advisors to withdraw from NFA membership. On August 26, 2009, NFA issued a Complaint charging Frontline Financial, Frontline Advisors and Charles G. Rice, the president, sole principal and sole owner of both firms, with failure to disclose material information to fund participants concerning the fund’s investments with convicted felon, Luis Rivas, and with other forex traders who were affiliated with Rivas, including information about the losses incurred with respect to these investments and Frontline Financial’s redemption of most of its interest in the fund. Frontline Financial was further charged with failure to file an exemption notice, disclosure document or annual financial statement for the Fund with NFA and failure to furnish participants with a financial statement for the Fund. On September 21, 2009, Frontline Financial, Frontline Advisors and Rice filed an Answer to the Complaint in which they denied the material allegations contained therein.

About The Author

Felix Shipkevich

Felix Shipkevich is a Manhattan-based attorney and general counsel for Shipkevich Law Firm. He has extensive experience working with the CFTC and NFA on registration, compliance, and enforcement issues for CPOs, CTAs, FCMs, IBs, and RFEDs. Felix also practices intellectual property and corporate governance law.