NFA takes enforcement action against Paron Capital Management, LLC

Update: The NFA has withdrawn its notice of intent to revoke registration of Paron Capital after Timothy D. Lyons was withdrawn as a principal. Crombie, who neither confirms nor denies the allegations, has also reached a settlement with the NFA.

National Futures Association (NFA) announced today that it has taken an emergency enforcement action against Paron Capital Management, LLC (Paron Capital Management) and its principal, James D. Crombie. Paron Capital Management is a Commodity Trading Advisor located in Tiburon, California. Based on NFA’s investigation, it appears that Paron Capital Management and Crombie solicited customers using promotional material that contained false and misleading performance information, and gave counterfeit brokerage statements to NFA as support for the performance information in the firm’s promotional material. Additionally, it appears that Paron Capital Management and Crombie provided NFA with false and misleading information about loans they have received and lawsuits filed against them.

Effective immediately, the Member Responsibility Action (MRA) and the Associated Responsibility Action (ARA) prohibit Paron Capital Management and Crombie from soliciting or accepting any funds from customers or investors, soliciting investments for any commodity pools or other investment vehicles, or placing any trades on behalf of customers or commodity pools. Paron Capital Management and Crombie are also prohibited from disbursing or transferring of any funds of customers, investors or commodity pools and from any bank accounts or brokerage accounts for which they exercise control without prior NFA approval.

Read more about this NFA regulatory action.

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