The U.S. NFA has ordered Chicago, Illinois based introducing broker Kingsview Futures LLC to pay a $50,000 fine.
The decision, issued by an NFA Hearing Panel, is based on a complaint authorized by NFA’s Business Conduct Committee (BCC) and a settlement offer submitted by Kingsview Futures.
The Hearing Panel found that Kingsview Futures failed to diligently supervise its operations and activities.
Specifically, on December 29, 2016, the BCC issued a Complaint against Kingsview Futures, an introducing broker and notice broker dealer NFA Member located in Chicago. The Complaint also names Josh M. Lewis, as a respondent. Lewis is the sole owner and chief executive officer of Kingsview Futures. ln addition to Kingsview Futures, Lewis is the co-owner of a non-Member trading education firm called Trading Advantage LLC.
The Complaint charged Kingsview Futures, Lewis, and the firm’s CCO, with failing to inquire about the promotional material which customers – who had been students of Trading Advantage – had received from Trading Advantage; and failing to correct misleading claims in such promotional material touting the supposedly successful trading of Trading Advantage students, when Kingsview Futures and its CCO knew or should have known that many of the Trading Advantage students, who had trading accounts through Kingsview Futures, suffered trading losses. Based on these alleged omissions, the Complaint charged Kingsview Futures and Lewis with violations of NFA Compliance Rule 2-9(a).
Without admitting or denying the allegations of the Complaint, Kingsview Futures and Lewis submitted an Offer in which they proposed to settle the charges against them on the following terms: Kingsview Futures agreed to pay a fine of $50,000 to NFA, in accordance with the terms of the Offer; and Kingsview Futures and Lewis also acknowledged that any Decision accepting their Offer would include a finding that Kingsview Futures failed to diligently supervise its operations and activities, in violation of NFA Compliance Rule 2-9(a).
Pursuant to the Offer, the Panel finds that Kingsview Futures failed to diligently supervise its operations and activities, in violation of NFA Compliance Rule 2-e(a).
The Panel, having considered this matter and having accepted the Offer made by Kingview Futures and Lewis, hereby orders Kingsview Futures to pay a fine of $50,000 to NFA, in accordance with terms of the Offer.
This Decision and the Offer shall not be used as a sole basis for any other action or proceeding by NFA against Kingsview Futures and Lewis, including any registration matter, except this Decision and the Offer may be used in an action to enforce the terms thereof or in a subsequent disciplinary action or regulatory action, where they may be considered as disciplinary history and as evidence in aggravation on the issue of sanctions.