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July 14, 2010

In this Issue: SEC Investor Alert FLEC Redesigned Website News for Forex Traders

SEC issues investor alert regarding BP oil spill

Disasters, both natural and man-made, tend to bring out the best and the worst in people. The recent oil spill in the Gulf of Mexico is no exception. Many Americans have donated their time and money to help the massive cleanup efforts along the Gulf coast. Unfortunately, others have used this disaster to scam unsuspecting investors.

The SEC recently issued an Investor Alert to help investors spot potential oil spill stock scams. In particular, the SEC advises investors to be skeptical of companies that "claim to have products or technologies that are effective in remediating oil spills or restoring the eco-system" and "claim that the company is providing technical assistance or expertise to British Petroleum (BP) or to U.S. government agencies such as the Coast Guard or the Environmental Protection Agency".

Read the complete text of the SEC's Investor Alert: Oil Spill Stock Scams - Don't Get Cleaned Out by False Cleanup Claims.

NFA would like to remind investors that they also should be wary of companies encouraging the purchase of oil futures or options contracts to take advantage of the "decrease in oil supply". Futures markets react quickly to current events and already reflect any impact from the Gulf oil spill. Remember, futures trading is a volatile, high risk activity and should not be entered into without a thorough understanding of the markets. In addition, because of the leverage involved in futures, the profit and loss fluctuations may be wider than in most types of investment activity and investors may be required to cover deficiencies due to losses over and above what they had expected to commit to futures.

Financial Literacy and Education Commission launches redesigned website

On April 28, the Financial Literacy and Education Commission (FLEC) launched its redesigned website, Content is organized by "Life Events", "My Resources" and "Tools". "Popular Topics" are also highlighted. This site provides summaries of resources available at other official government sites and allows visitors to open those pages in a new window ("Learn More").

The FLEC, created by Congress in 2003, is made up of 20 agencies and bureaus of the U.S. Federal government, including the Commodity Futures Trading Commission and the Securities and Exchange Commission. The FLEC's mission is to "improve financial literacy and education. Its website is a central place of unbiased, reliable information and materials on financial topics."

News for forex traders

If you're a forex trader, you might be interested in two short video interviews with NFA President Dan Roth. The interviews were conducted by MoneyShow, Inc. MoneyShow produces a wide range of programs, including the Traders Expo, The Forex Trading Expo and The Financial Advisor Symposium. In 2006, MoneyShow launched, providing live and on-demand access to presentations featuring advice, strategies, recommendations and education for individual investors, active traders and financial advisors.

In the first interview, "Before You Make a Spot Forex Trade", Mr. Roth explains how the regulations have changed in the forex markets and names key considerations that traders must be aware of. In the second interview, "Before You Start FX Trading", he poses some key questions that beginners must consider before they even open their first trading account.

In related forex news, NFA will again this year participate in the Forex Trading Expo, held on September 23-25 at Caesar's Palace in Las Vegas. NFA will sponsor an information booth in the exhibit hall, where staff will distribute forex education brochures and discuss 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 the expo's website.  

Recent Enforcement Actions

In the first quarter of 2010, 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
Shahzad Akram
Cheryl A. Arts
AVS Carter Financial, Inc.
Brewer Futures Group LLC
Steven J. Brewer
Gina M. Campise
City Capital Management LLC
Luke M. Coleman
Commodity Futures & Options Service, Inc.
Global Futures Trading
Integrity FX LLC
JKV Global Enterprises Inc.
LaSalle Global
Jonathan Lee
Nabil P. Niman
Jason Ritchie
Carlo Scevola
Alexander M. Silverman
Dan E. Stamer
Michael W. Victor
Windsor Wealth Management LLC
Bryan L. Wright

Member Responsibility Actions
System Capital, LLC
Joshua W. Wallace

Final Orders in Registration Cases
Nicholas Hegarty
Justin S. Maese

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