NFA hits North Carolina CTAs with enforcement action

The NFA announced today that is has taken emergency enforcement action against D2W Capital Management LLC (D2W), Prestige Capital Advisors LLC (Prestige), as well as their principal, Toby Hunter. The North Carolina-based CTAs and Hunter allegedly mislead customers, used similarly false and  misleading information to solicit new customers, and did not provide customers with NFA disclosure documents.

During a routine NFA exam of the CTAs, Hunter was unwilling or unable to provide current books and records to prove that the Prestige Fund had the three accounts, nor to account for large withdrawals from the Fund’s brokerage account.  The NFA notice notes that “even worse than the fund’s significant loss of assets, however, is the fact the NFA believes Prestige is lying to fund participants regarding the value of their investments, and that participants have no indication the fund is nearly exhausted.” Allegedly, D2W’s accounts are similarly haphazard.

The Member Responsibility Action(“MRA”) and Associate Responsibility Action (“ARA”) prevents the defendants from soliciting or accepting funds from customers, investors, managed accounts, pools, or other vehicles, or placing any trades. They are also prohibited from disbursing or transferring any funds without NFA approval. The actions will remain in place until the CTAs and Hunter can prove they are in compliance with NFA regulations.

Read more about this NFA emergency enforcement action.
Creative Commons License photo credit: Arenamontanus

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