The NFA has suspended Introducing Broker (“IB”) Angus Jackson, Inc, and its principal, Martin H. Bedick, from Association membership for seven years. Another firm principal, Michael E. Rose, has been suspended for a period of two years. Both Bedick and Rose are also barred from acting as a principal to any other NFA member.
According to the NFA hearing panel, Bedick and Angus Jackson provided false information to the Association about an individual acting on behalf of this firm. This individual was unregistered, but he acted as a broker and received commission payments. Bedick insisted that this individual only provided and was paid for computer consulting services for the IB. The hearing panel found that Rose was aware that this individual received commissions, but ignored the situation and therefore failed to fulfill his responsibilities as principal of the firm.
The hearing panel also found that Angus Jackson failed to provide annual AML training to its Associated Persons (“APs”). Finally, the IB included an order for a non-customer account in the same bunched order, and then provided post-execution allocation instructions for the bunched orders. IBs are not permitted to do this according to NFA rules.