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NOTICE OF MEMBER RESPONSIBILITY ACTION AND ASSOCIATE RESPONSIBILITY ACTION:
On January 27, 2012, NFA issued a Member Responsibility Action ("MRA") against BKT Capital Management LLC and an Associate Responsibility Action ("ARA") against Basil Fayadh ("Fayadh") whereby:
1. BKT and Fayadh are hereby suspended from NFA membership effective immediately and until further notice;
2. BKT, Fayadh and any person acting on behalf of BKT are prohibited from disbursing or transferring any customer funds over which Fayadh, BKT, BK Trading Inc. (BK Trading) or any person acting on behalf of BKT or BK Trading exercises control, without prior approval from NFA; and
3. BKT and Fayadh are required to provide copies of this MRA/ARA by overnight courier or e-mail to all: a) customers or investors of BKT or BK Trading; and b) any NFA Member (e.g., Forex Dealer Members (FDMs), Futures Commission Merchants), banks and other financial institutions in which money is on deposit in the name of BKT, BK Trading, Fayadh or any accounts either BKT, BK Trading or Fayadh operates or controls.
This action is effective immediately and deemed necessary to protect customers because BKT and Fayadh have deliberately misled NFA and failed to cooperate with NFA throughout its investigation and attempted examination of the firm.
The MRA and ARA will remain in effect until such time as BKT and Fayadh have demonstrated to the satisfaction of NFA that the firm is in complete compliance with all NFA Requirements.