The National Futures Association (NFA) has issued a two year ban and accepted a settlement of $10,000 from both of the owners of Comtrade Financial Company, a commodities and electronic trading company based in Irvine, California.
On September 3, 2014, the NFA issued a Complaint charging Michael A Plaia, conducting business as Comtrade Financial Company and his colleague Nickolas Weber with fraud and exercising discretion over customers’ accounts without written authority.
The Complaint also charged Mr Plaia and Mr. Weber individually with failing to observe high standards of commercial honor and just and equitable principles of trade. Finally, the Complaint charged Mr. Plaia, individually, with failing to diligently supervise.
Following an NFA investigation into this matter, the regulatory authority has now drawn its conclusion.
Mr. Plaia submitted his Offer in which he agreed not to apply to NFA in any capacity for two years and to pay a fine of $10,000 should he apply to NFA after the two-year period had passed.
Mr Weber submitted his Offer in which he agreed not to apply to NFA in any capacity in the future. In making their Offers, Mssrs. Plaia and Weber neither admitted nor denied the allegations made against them in the Complaint.
The Hearing Panel, having considered this matter and having accepted the Offers made by Mssrs. Plaia and Weber, orders as follows:
Mr. Plaia shall not apply for NFA membership, associate membership or principal status with any NFA Member for a period of two years from the date of issuance of this Decision. Should Mr. Plaia apply for NFA membership, associate membership or principal status with any NFA Member following the expiration of the two year period, he shall pay a fine of $10,000 to NFA, due and payable in full on or before the date of his application. No consideration shall be given to or action taken on any future application of Plaia’s until his fine has been paid in full.
Mr. Weber shall not apply for NFA membership, associate membership or principal status with any NFA Member at any time in the future.
Mr. Plaia’s Offer and this Decision may be used in any action to enforce the terms thereof and/or in any subsequent disciplinary or regulatory action, where they may be considered as evidence in aggravation.
Editor’s Note: The Comtrade Financial Company referred to here is in no way whatsoever connected with e-banking technology provider Comtrade Financial Services. The two firms, despite similar names, are completely different entities.
For the full case summary and NFA decision, click here.