National Futures Association (NFA), the self-regulatory organization for the U.S. derivatives industry, has announced that it has permanently barred Chicago, Illinois guaranteed introducing broker (GIB) Fortune Trading Group, Inc. (FTG) from membership and from acting as a principal of an NFA Member. The NFA also barred FTG’s sole principal and an associated person Jonathan Schuler from membership and from acting as a principal of an NFA Member for five years. In addition, NFA ordered Chicago, Illinois futures commission merchant Ironbeam, Inc. (Ironbeam), FTG’s guarantor, to pay a $100,000 fine.
The Decision as to FTG and Schuler and the Decision as to Ironbeam, issued by an NFA Hearing Panel, are based on a Complaint issued by NFA’s Business Conduct Committee on July 11, 2017 and settlement offers submitted by FTG, Schuler and Ironbeam. The Hearing Panel found that FTG and Schuler failed to observe high standards of commercial honor and just and equitable principles of trade by making trading recommendations primarily designed to increase commissions that served no economic or other purpose for customers.
The Hearing Panel also found that FTG and Schuler used misleading and deceptive promotional material and made misleading and deceptive sales solicitations. Finally, the Hearing Panel found that Ironbeam failed to diligently supervise the operations of FTG, Ironbeam’s GIB.
The complete text of the Complaint, Decision as to FTG and Schuler and Decision as to Ironbeam can be viewed on NFA’s website.