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)