Wextrade Commodity Managers LLC was ordered to withdraw its NFA membership effective immediately and never apply for NFA membership or principal status with any NFA Member in the future. Paul Adrian, WCM’ principal and AP, was ordered not to apply for NFA membership, associate NFA membership or principal status with any NFA Member for three years.
On May 19, 2009 the NFA issued a Complaint charging WCM with commingling pool assets; receipt of funds in unauthorized names or accounts; and failure to provide required information. The Complaint further charged WCM with using deceptive promotional material; failure to review promotional material prior to use; failure to register an AP and failure to list a principal. The Complaint also charged WCM and Adrian with failure to supervise.
Some Rules Broken:
C.R.2-9(a) – SUPERVISION OF EMPLOYEES
C.R.2-2(a) – CHEAT,FRAUD DECEIVE CUSTOMERS
C.R.2-29(b)(1) – USE OF DECEPTIVE PROMO MATER
R.R.206 – REGISTRATION OF APs OF FCMs, IBs, CPOs, CTAs AND LTMs
C.R.2-29(e) – RECDKEEPING PROMO MATERIALS
R.R.208 – CHANGES REQUIRING NEW REGISTRATION
C.R.2-9(a) – SUPERVISION OF EMPLOYEES
C.R.2-13 – RECORDKEEPING FOR CPOS/CTAS
C.R.2-29(b)(2) – MISSTATEMT/OMISSION OF FACT PROMP