The US National Futures Association (NFA) has today issued a notice concluding that British financial consultancy 80Plus LLP, based in Bradford-On-Avon, Wiltshire, England, has been denied membership of the NFA.
The company applied for membership as a Commodity Pool Operator, despite being based outside of the United States, however Mr. Sherwin, according to the NFA, has had a previous enterprise which was based in North America, which became the subject of
The NFA’s investigation into the suitability of 80Plus for membership reached a turning point on July 9, 2014, when the NFA’s President issued a Notice of Intent to Deny Registrations to James T. Sherwin, 80Plus Partners US Fund LLC, and 80Plus Partners Master Fund Limited (collectively, the Respondents).
The Notice of Intent alleged that Mr. Sherwin may be disqualified from registration under Section 8a(2)(C)(ii) of the Commodity Exchange Act. It is also allged that 80Plus Partners US Fund LLC and 80Plus Partners Master Fund Limited may both be disqualified from registration under Section 8a(2)(H) of the Act because Sherwin is a pending principal of both firms.
On July 28,2014, the Respondents filed a response to the Notice of Intent in which they neither admitted nor denied the allegations contained therein, and requested an oral hearing.
In terms of background, the NFA states that on or about March 8, 1990, in the United States District Court for the District of Columbia, in Securities and Exchange Commission v. GAF Corporation and James T. Sherwin, Case No. 90-0527, a Final Judgment of Permanent Injunction (Settlement) was entered wherein Mr. Sherwin was permanently enjoined from violating Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 10b-5 and 13b2-1 and from aiding and abetting violations of Exchange Act Sections 13(b)(2)(A) and l3(d)(2) and Exchange Act Rule 13d-2.
The NFA’s President has now issued an Amended Notice of Intent to Deny Registrations on January 2, 2015 to James T. Sherwin and 80Plus Partners LLP,
In this Amended Notice, the NFA concludes that as a result of Mr. Sherwin being a pending principal of 8OPlus Partners LLP, he may be disqualified from registration under Section 8a(2)(C)(ii) of the Act, then 80Plus
Partners LLP may be disqualified from registration under Section 8a(2)(H) of the Act, 7 U.S.C. $ 12(a)(2)(H)(2012), for having an unfit principal.