NFA issues $25k fine to Direct Futures LLC

On September 8, 2010, the  National Futures Association (NFA) commenced a business conduct committee (BCC) action charging Direct Futures LLC and associated persons with failure to supervise and using deceptive sales practices.

On March 3, 2011, the NFA issued a decision accepting a settlement against Direct Futures, finding that it violated NFA Compliance Rule 2-9 by failing to diligently supervise the sales activity of its associated persons  and fining the company $25,000. In separate decisions Stuart Gillespie, Alfred Magliano, and Chas Pearson were each suspended from NFA membership for a period of 3 years, after which they must tape record all conversations between them and existing or potential customers for a period of a year. In the event that any of them becomes a principal of an NFA Member firm before December 31, 2018, that firm must tape record all conversations between its APs and existing or potential customers for a period of a year.

Read more about this NFA BCC action against Direct Futures LLC.

About The Author

Elan Mendel

Elan Mendel is an associate with Shipkevich PLLC, and has done registration, compliance, and enforcement defense work for commodities, futures and forex firms registered with the CFTC and NFA as FCMs, RFEDs, and others. Elan also specializes in domestic and cross-border insolvency issues.