NFA orders California Introducing Broker barred from registration permanently

The NFA announced today that is has issued a Business Conduct Committee, or BCC, action permanently barring Roslex Corporation, an introducing broker, or IB, from ever registering with the Association again. Additionally, one of the firm’s principles, Gabriel A. Robles, is barred from membership for four years, and must pay a hefty fine if he ever elects to rejoin. The California-based IB allegedly engaged in abusive trading practices. Roslex and Robles elected to settle out of court. They have neither confirmed nor denied the charges.

On May 11, the NFA filed a compliant against Introducing Broker Roslex, Robles, and three others (Julio C. Aquino, Erick E. Ware, and Philp A. Day). The brief claimed that the Introducing Broker, its princpals (Robles and Aquino), and its APs (Ware and Day) were using exploitative trading methods. Specifically, on the designated accounts that they had power of attorney (POA) over, the four would make excessive numbers of trades in order to maximize their commissions. Often, these trades were not only unnecessary but unwise, causing some account-holders to lose their entire initial investment. The brief also contends that record-keeping standards were inadequate, and that it failed to maintain sufficient capital in 2010. Even so, Robles withdrew capital from the IB to pay his personal credit card. For all of this this, the defendants were accused of failing to “uphold just and equitable principles of trade” and “observe high standards of commercial honor.”

As an Introducing Broker, Roslex is liable for the actions of its employees, especially its association persons. Roslex and Robles (the owner as well as a principle) have already address the complaint by settling. However, Aquino, Ware, and Day have yet to make a statement or give any other indication of how they intent to respond to the NFA’s brief.

Read more about this NFA enforcement action against this IB.
Creative Commons License photo credit: timsnell

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