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The National Futures Association ("NFA") accepted an offer of settlement from a commodity trading advisor ("CTA") concerning allegations that the CTA had failed to supervise its operations and employees properly.
In the Complaint, the NFA alleged that an employee of Northstar Commodity Investment Co. LLC ("Northstar") had made unauthorized trades in the accounts of two customers. Northstar discovered that an employee would place unauthorized trades in customers' accounts, transfer profitable trades to his personal account, and leave losing trades in the accounts of the customers. The employee allegedly placed a total of 186 unauthorized trades using this method. After identifying the violations, Northstar reimbursed the affected customers and fired the employee.
The NFA charged Northstar with violations of NFA Compliance Rule 2-9(a) for failing to supervise its employees properly. The NFA accepted a $15,000 settlement offer from Northstar.
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