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NFA Investor Newsletter

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July 19, 2007

In this Issue: Scams and Swindles Top 10 Traps Facing Investors Panel Discussion at Forex Trading Expo

New brochure from NFA can help you avoid "Scams and Swindles"

NFA has published a new investor education booklet entitled "Scams and Swindles: An Educational Guide to Avoiding Investment Fraud." The guide describes common characteristics of investment scams and outlines steps individuals can take to avoid them.

"Fraudulent investment offers are pitched at us every day," says NFA's Senior Vice President of Strategic Planning and Communications Karen Wuertz. "They come by telephone, through e-mails, in newspapers, magazines and late night television programs. We all have to learn how to spot these scams before we lose our money to them."

Single copies of "Scams and Swindles" are offered free of charge. Individuals may order a copy of the publication by calling NFA's Information Center toll-free at 800-621-3570 or by emailing NFA at

Individuals or organizations may purchase multiple copies of the brochure for 80¢ each. Payment must accompany any request for multiple copies. Mail a check made payable to National Futures Association to NFA Information Center, 300 S. Riverside Plaza, #1800, Chicago, IL 60606.

Individuals also have the option of viewing and printing the publication by downloading it from the Investor Learning Center of NFA's Web site (

State regulators list forex trading as one of the "Top 10 Traps Facing Investors"

The National Association of Securities Administrators Association (NASAA) recently published its forecast of the "Top 10 Traps Facing Investors." Listed as one of the traps was off-exchange foreign currency (forex) trading.

According to NASAA, "Foreign exchange (forex) trading can be legitimate for governments and businesses concerned about fluctuations in international currencies, and it can even be appropriate for some individual investors. But the average investor should be wary when it comes to these complex markets. Forex scams attract customers with sophisticated-sounding offers placed in newspaper advertisements, radio promotions, or on Internet sites. Remember: If you don't understand an investment, don't invest."

Other traps identified by NASAA include affinity fraud, oil and gas scams, Internet fraud, prime bank schemes, investment seminars, private securities offerings, real estate investment contracts, unlicensed individuals and unregistered products, and unsuitable sales. For more information, visit NASAA's Web site at

For more information on the risks of forex trading, visit the Investor Learning Center of NFA's Web site (

NFA Compliance Director to participate in panel discussion at upcoming Forex Trading Expo

Compliance Director Sharon Pendleton will participate in a panel discussion entitled, "Making the Right Choices When Opening Your Forex Account" at the Forex Trading Expo, scheduled on September 15 and 16 in Las Vegas. Joining Sharon on the panel will be CFTC Deputy Director Lawrence Patent, Division of Clearing and Intermediary Oversight.

NFA will also sponsor an information booth in the exhibit hall, where staff will distribute forex education brochures and demonstrate how to conduct online background checks of forex firms and brokers.

"Investors attending the Expo spend a lot of time learning forex trading strategies," says Larry Dyekman, director of Communications and Education at NFA. "We give them the opportunity to spend an equal amount of time learning about the risks involved in trading forex and the firms who are vying for their money."

For more information on the expo, visit

Recent Enforcement Actions

In the second quarter of 2007, NFA's Business Conduct Comittee 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
Shamim Jalil Ahmed
Alpha Foreign Exchange Group
Anthony J. Columbo
Anthony John Columbo, Inc. d/b/a Ace Financial Group
Michael Berkowitz
Brandywine Asset Management
Kirk F. Chambers
Chambers Golon Investments
Commodity Futures & Options Service, Inc.
Cytrade Financial LLC
Alex Dekhtyar
Direct Forex LLC
Direct Trading Group LLC
Patrick J. Driscoll
Eiger International, Inc
Imran Firoz
Forex International Investments, Inc.
FX Option1, Inc.
Gain Capital Group LLC
Global Elite Group
Roland Hagman
Horta International LLC
Interactive Brokers LLC
Marcin Jasinski
Zachary Kholostoy
Randall J. Kippes
Jon R. Kramer
Henrek M. Lalaian
Juhn E. Lee
Adam Leon
Midas Communication Services LLC
Joseph P. O'Mara
Pro Active Futures, Inc.
Spot FX Clearing Corp.
John F. Stalzer
Steadfast Futures and Options

Member Responsibility Actions
11 Trading Inc.
Christ Investment Service LLC
Eiger Investment Group
Joerg Heierle
Lake Shore Asset Management Ltd.
Laurence M. Rosenberg
Trend Commodities Limited Partnership
United Global Markets LLC

Final Orders in Registration Cases
Paul Van Dine

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