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NFA Investor Newsletter

April 14, 2009
In this Issue: Investor Alert Economic Stimulus Scam Los Angeles Traders Expo Money Smart Week 2009

NFA issues Investor Alert for retail forex customers

On March 31, NFA published a new Investor Alert for forex customers advising them of new requirements that Forex Dealer Members (FDMs) must meet regarding the information to be included in customer account statements. The new requirements, which become effective on June 1, 2009, will provide retail forex customers with clearer, more uniform confirmations, daily statements and monthly statements.

As stated in the Alert, "NFA believes that forex customer account statements should contain clear, concise and complete information. The more difficult a customer account statement is to understand, the easier it is for a broker or account manager to mislead a customer about the value of a customer's account and the success of the customer's trades."

Click here to view the entire Investor Alert.

NFA reminds all individuals who trade forex to conduct business with a regulated forex firm - i.e., a bank, an insurance company, a broker-dealer or a futures commission merchant. If the firm is a futures commission merchant, it is required to be registered with the Commodity Futures Trading Commission and to be a Forex Dealer Member of NFA. You can easily check an FDM's registration status through NFA's Background Affiliation Status Information Center (BASIC), available through NFA's website (www.nfa.futures.org).

Anyone who has any questions or concerns regarding their forex dealer should contact NFA either through our website (www.nfa.futures.org) or by calling our Information Center toll-free at (800) 621-3570 during normal business hours.


Federal Trade Commission warns consumers to beware of economic stimulus scams

The Federal Trade Commission is warning consumers that they could get stung by an economic stimulus scam. On the web and in email, scammers tell consumers they can help them qualify for a payment from President Obama's economic stimulus package. They merely have to provide a little information (e.g., a bank account number) or a small payment.

Email messages may ask for bank account information so that the operators can deposit consumers' share of the stimulus directly into their bank account. Instead, the scammers drain consumers' accounts of money and disappear. Or bogus email may appear to be from government agencies and ask for information to "verify" that you qualify for a payment. The scammers use that information to commit identity theft. Some email scams don't ask for information, but provide links to find out how to qualify for funds. By clicking on the links, consumers have downloaded malicious software or spyware that can be used to make them a victim of identity theft.

"Web sites may advertise that they can help you get money from the stimulus fund. Many use deceptive images of President Obama and Vice President Biden ," says Eileen Harrington, acting director of the FTC Bureau of Consumer Protection. "Don't fall for it; you'll get scammed."


NFA provides investor education materials at Los Angeles Traders Expo

NFA is sponsoring an information booth at the Los Angeles Traders Expo on June 4-6 at the Pasadena Convention Center. NFA staff will distribute copies of NFA's investor education materials and demonstrate how to conduct a background check of a futures firm or individual using NFA's Web-based Background Affiliation Status Information Center (BASIC).

The Expo offers educational seminars and workshops as well as an exhibit hall featuring trading software providers, futures and options exchanges and other vendors. For more information visit the Expo's website at www.TradersExpo.com.

NFA spreads investor education message during Money Smart Week

Money Smart Week 2009

NFA will participate in two events in conjunction with Money Smart Week in Chicago. Coordinated by the Federal Reserve Bank of Chicago, Money Smart Week (April 18-25) offers more than 450 free educational classes, seminars and activities focusing on financial topics for people of all walks of life.

On Tuesday, April 21, NFA and AARP will co-sponsor a seminar to advise individuals on how to help make ends meet during the current economic downturn and how to avoid becoming a victim of investment fraud. During the program an AARP representative will discuss the information in a new section of AARP's website called "Real Relief". Immediately following the AARP portion of the program, an NFA representative will provide attendees with advice on how to avoid becoming victims of investment fraud.

On Wednesday, April 22, NFA will join several other regulatory and enforcement agencies at a Financial Regulators Fair at the State of Illinois Building, Thompson Center. Representatives from ten agencies, including the CFTC, FINRA, the SEC and the FDIC, will distribute information on financial protection, banking, credit and investing. The event will run from 10:00 a.m. to 2:00 p.m.

For more information on these and other Money Smart Week events, visit www.moneysmartweek.org/Chicago.


Recent Enforcement Actions

In the first quarter of 2009, NFA's Business Conduct Committee issued Decisions, Member Responsibility Actions and Final Orders in Registration Cases against the following NFA Member firms and individuals. Click on the name for more detailed information.

Decisions in Disciplinary Cases
1 FX Trader LLC
American Atlantic Financial Corp.
David C. Arena
Mark D. Ashton
Demian Barrett
Irwin M. Berger
Rafael Carnicer
Victor E. Cilli
Commodity Futures Consultants Corp.
First Choice Futures and Options, Inc.
Jamie S. Duncanson
Sheldon C. France
Joel Garcia
Michael M. Ghaemi
Institutional Advisory Services Group
JMJ Capital Group LLC
Last Atlantis Capital Management LLC
Magma Fund Advisors Ltd.
John Menoutis
Desmond M. Muthemba
Thaddeus Nathaniel
Princeton Trading Advisors, et al.
Progressive Investment Funds
Trendex Commodity Corp.
Universal Commodity Corp. et al.
Walsh Trading, Inc.
Thomas Paul Wayne
Zoco LLC

Member Responsibility Actions
Mark E. Bloom
GlobeFX Club, Inc.
Paul Greenwood
Stephen Walsh

Final Orders in Registration Cases
Dana J. Bonik
Dale Box
Nicholas R. Swee




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