NFA Suspends Golden Point and AP Glenn Graham In Emergency Enforcement Action
For Immediate Release
June 22, 2018
NFA takes emergency enforcement action against Chicago, Ill. commodity pool operator and commodity trading advisor Golden Point Capital Management LLC and its sole principal Glenn Graham
June 22, Chicago—NFA announced today that it has taken an emergency enforcement action against Golden Point Capital Management LLC (Golden Point), an NFA Member commodity pool operator and commodity trading advisor located in Chicago, Ill., and its sole principal and associated person Glenn Graham.
This action was taken to protect pool participants and customers because of Golden Point and Graham’s failure to cooperate with NFA. Due to Golden Point and Graham’s lack of cooperation, NFA is unable to determine if the funds Graham withdrew from the pool operated by Golden Point and sent to either himself, Golden Point or family members were legitimate redemptions.
Effective immediately, Golden Point and Graham are suspended from NFA membership and are prohibited from disbursing or transferring any funds without NFA‘s prior approval. The action will remain in effect until Golden Point and Graham have demonstrated to NFA‘s satisfaction that they are in complete compliance with all NFA requirements.
Golden Point and Graham may request a hearing before NFA‘s Hearing Committee.
NFA Compliance Allegations Against Golden Point and Graham
“In support of these actions, NFA has attached the affidavit of Tracey Hunt, who is an Associate Director in NFA’s Compliance Department, and based thereon alleges as follows:
Golden Point became a registered CTA/CPO and an NFA Member on March 8, 2012. The firm is located in Chicago, Illinois. Graham has been an AP and a listed principal of Golden Point and an NFA Associate since March 8, 2012. Graham has no prior registration history.
Golden Point operates the Golden Pool, which commenced trading in July 2012. According to the pool quarterly reports (PQRs) that Golden Point filed with NFA, the Pool experienced significant negative performance and the Pool’s net asset value (NAV) decreased substantially from December 31, 2015 to December 31, 2017. Specifically, as of December 31, 2015, Golden Point reported the Pool’s NAV was about $2.1 million. Subsequently, Golden Point reported pool NAV of approximately $1.3 million and a negative annual rate of return (ROR) of 50% as of December 31, 2016 and pool NAV of about $460,000 and a negative annual ROR of approximately 48% as of December 31, 2017.
According to the limited records Graham provided to NFA, as of January 2018, the Pool had 29 participants. Graham, his general partnership Golden Point-and various Graham family members account for six of these participants, while the remaining 23 appear to be outsiders. As f June 15, 2018, the Pool had about $360,000 in cash held in a trading account at an NFA Member futures commission merchant. Graham previously closed out all open positions in this account in late May 2018.
Given these large year-over-year trading losses, NFA commenced an examination of Golden Point. At the beginning of the exam, Graham was slow in providing NFA with documents and information. Further, despite repeatedly calling and emailing Graham from May 25, 2018 through June 19, 2018-and repeatedly reminding him of his and the firm’s obligation under NFA Compliance Rule 2-5 to cooperate promptly and fully with NFA during the course of NFA_s examination-Graham has not produced complete records to NFA.
Specifically, Graham has failed to provide certain key documents and information to NFA, including complete supporting documentation (e g., cancel/ed checks and wire advices) for the Pool’s bank accounts. Graham has also failed to produce complete bank statements and supporting documentation for Golden Point’s operating accounts and Graham’s personal accounts. Without these key documents, NFA is unable to determine the appropriateness of the numerous check and/or wire withdrawals that Graham made from the Pool and either sent to himself or to his general partnership- Golden Point. From 2012-2017, Graham withdrew several hundred thousand dollars from the Pool’s bank accounts. Although Graham claims the majority of these withdrawals were redemptions of either his or Golden Point’s interests in the Pool, Graham has failed to produce sufficient third- party documentation (i.e., cancelled checks or wire advices) that would evidence that either he or Golden Point made any contributions to the Pool. Similarly, Graham has not produced sufficient evidence to demonstrate that Golden Point was entitled to the management fee Graham withdrew from the Pool’s bank account, and it appears as though Graham may have overdrawn the management fee.
Similarly, from January 2013 to December 2017, Graham also sent several hundred thousand dollars of Pool assets to family members. Again, though Graham claims these withdrawals were redemptions of these family members’ interests in the Pool, he has only provided documentation to support $40,000 of family member contributions into the Pool.
Since Golden Point and Graham have failed to cooperate with NFA, NFA is unable to determine whether Golden Point and Graham are in compliance with all NFA Requirements. In particular, NFA is unable to substantiate the contributions that Graham claims he, Golden Point and family members made to the Golden Pool. Therefore, NFA is unable to determine if the monies Graham withdrew from the Pool and sent to either himself, Golden Point or family members were legitimate redemptions of their respective interests in the Golden Pool.
The MRA and ARA will remain in effect until such time as Golden Point and Graham have demonstrated to the satisfaction of NFA that he and the firm are in compliance with all NFA Requirements.”