Frontline Advisors LLC and Frontline Financial, Inc. Propose Texas Securities Fraud Settlement that Includes Permanent NFA Bar

The National Futures Association has accepted Frontline Advisors LLC and Frontline Financial, Inc.‘s proposal to permanently remove themselves as a member of the group. The Texas-based Commodity Trading Advisors and Commodity Pool Operators offered the settlement after the NFA filed a complaint against them in 2009 accusing FFI and principal Charles G. Rice of failing to disclose key information to participants in a pool they were running. Among the material information withheld:

• In exchange for promissory notes, the pool would lend money to third parties • When issuers of the promissory notes defaulted, the pool sustained losses • Even after one note went into default, FFI charged a monthly management fee to participants • FFI redeemed its interest in the pool • FFI wrote off notes but did not give participants specifics about the write-offs
The NFA also accused FFI of not filing an annual financial statement, disclosure document, or exemption notice for the fund. Meantime, Rice has also agreed to a withdraw himself as an NFA member for five years. If he decides to reapply for membership, he has to pay a $10,000 fine.

Our Texas securities fraud lawyers represent clients with claims against investment advisors and stockbrokers. The most common reasons why an investor would file a securities claim or lawsuit are:

• Misrepresentations • Omissions • Unauthorized trading • Overconcentration • Registration violations • Churning • Margin account abuse • Failure to execute trades • Negligence • Breach of fiduciary duty • Failure to supervise • Breach of contract • Breach of promise
Your first consultation with our Dallas securities fraud law firm is free.

Related Web Resources:
Read the Complaint (PDF)

Read the Decision (PDF)

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