The National Futures Association (NFA) has concluded its decision with regard to FX Evolve LLC and its principal, Jason B. Hoerr, ruling that the firm and its principal should pay a $50,000 fine if either entity apply for apply for NFA membership, associate membership or principal status with any NFA Member.
This decision relates to an initial complaint which was issued on December 30, 2014 by the NFA, charging FX Evolve and Mr. Hoerr with failing to observe high standards of commercial honor and just and equitable principles of trade and failing to supervise. The Complaint also charged FX Evolve and Mr. Hoerr with doing business with non-NFA Members that were required to be registered and failing to implement an adequate AML program.
LeapRate reported in December that the NFA’s complaint stated that three of FX Evolve’s customer accounts – Wilma Minger, Linda Felber (Felber), and DAS Funding Group LLC (DAS Funding Group), which was a Nevada LLC owned by Dominic Schender, had the highest trading volume of any of ILQ’s accounts. Wilma Minger also appeared to have an interest in another account at lle in the name of TFG FX LLC (TFG), which was also introduced by FX Evolve. TFG was an incorporated company of which Wilma Minger and individuals named Craig Linch and Stephen Kirkland (Kirkland) were managing members.
Mr. Kirkland was named in a 2013 Securities and Exchange commission (SEC) enforcement action in which he was charged with making false and misleading statements to investors.
Wilma Minger’s son, Steve Minger, was the contact for the TFG account. In 2005, Steve Minger pleaded guilty to bank fraud, conspiracy and income tax evasion. Further, Steve Minger owned a company in Florida that had the exact name as DAS Funding Group, the Nevada company which had an account introduced by FX Evolve to lLQ.
Hoerr was aware of the criminal case against Steve Minger, knew that Steve Minger had pled guilty to engaging in criminal activity, and that Steve Minger went to jail. Hoerr claimed to be unaware of the SEC case against Mr. Kirkland, although Mr. Hoerr admittedly knew Kirkland very well.
The accounts of Wilma Minger, Felber, and DAS Funding Group all purportedly traded using a third-party trading system called the “Turbo” trading system. According to Hoerr, FX Evolve did not solicit for the Turbo trading system. lnstead, it was the decision of Wilma Minger, Ms Felber, and DAS Funding Group to use the Turbo trading system to trade their accounts. They also asked to trade their accounts using ILQ’s multi-account manager structure, which allowed their trades to be placed in a master account and then atlocated to their individual accounts.
In order to put this to an end, FX Evolve and Mr. Hoerr submitted an Offer in which they offered to settle this case on the following terms: they agreed that should FX Evolve or Mr. Hoerr apply for NFA membership, associate membership or principal status with any NFA Member, FX Evolve and/or Mr. Hoerr shall pay a fine of $50,000 to NFA, due and payable in full on or before the date of any such application.
FX Evolve and Mr. Hoerr also acknowledged and agreed that no consideration shall be given to or action taken on any future application for NFA membership, associate membership or principal status with any NFA Member until the fine has been paid in full.
ln addition, FX Evolve and Hoerr agreed that if they apply for NFA membership or associate membership or seek to become a principal of an NFA Member then, in any such event, the facts and violations alleged in the Complaint in this case shall be deemed admitted, and shall not be contested by them, and may be used as the sole basis for denying them registration, NFA membership or associate membership and/or principal status.
For the official announcement from the NFA, click here.