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For Immediate Release
May 28, 2010

For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org

NFA takes emergency enforcement action against Oregon firm System Capital, LLC and its principal

May 28, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against System Capital, LLC (System Capital) and Joshua W. Wallace. System Capital is a Commodity Trading Advisor (CTA) located in Lake Oswego, Oregon and Wallace is the firm's sole principal and associated person.

NFA issued the Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) to protect the customers of System Capital because System Capital and Wallace solicited customers with false and misleading information and misled and lied to NFA in its investigation of the firm. The investigation was prompted by documents received by NFA from another NFA Member which contradicted the information NFA had on file for System Capital. During the investigation, Wallace admitted to preparing and distributing a fabricated report that purported to show that System Capital was audited by a nationally recognized public accounting firm and to providing information to potential investors that showed significant profitable performance which had been falsely represented as actual.

System Capital and Wallace are prohibited from soliciting or accepting any funds from customers or investors, soliciting investments for any commodity pools or other investment vehicles, or placing any trades on behalf of customers, commodity pools, or investors except liquidation or risk reducing trades. Additionally, System Capital and Wallace are prohibited from disbursing or transferring any funds of customers, investors, or commodity pools over which they exercise control, or participants in any such commodity pools, without prior approval from NFA.

Wallace and System Capital may request a hearing before NFA's Hearing Committee.

The complete text of the MRA/ARA is available on NFA's website (www.nfa.futures.org).

The following Compliance staff members are responsible for this case: Lauren Brinati (312-781-1215) and Brandon Tasco (312-781-1379).

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the futures markets.
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