Case Summary

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, Burstein filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 21, 2008, Comtrust and Mehler filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, Gee filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On March 23, 2009, Gee was permanently barred from NFA membership, associate membership and from acting as a principal of an NFA Member. Smith was ordered to pay a $10,000 fine and is suspended from NFA membership and associate membership and may not act as a principal of an NFA Member for six months. For a period of one year (exclusive of any period during which Smith is suspended or is not an NFA Member or an Associate Member), Smith may not be an Associate of an NFA Member unless Smith's sponsor agrees in writing to tape record all conversations that occur between Smith and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA. During the one year period, Smith may not be an NFA Member or a principal of an NFA Member unless that Member agrees in writing to tape record all conversations between the firm's APs and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA.

Santovito was barred from NFA membership and associate membership and may not act as a principal of an NFA Member for two years. Should Santovito be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of his two-year bar, he must pay a $20,000 fine, due and payable within 30 days after he is granted NFA membership associate membership or principal status. For six months (exclusive of any period during which Santovito is not an NFA Member or an Associate Member), Santovito may not be an NFA Member, a principal of an NFA Member or a branch office manager of an NFA Member unless that Member agrees in writing to tape record all conversations between the firm's APs and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

DECISION:

On April 10, 2008, Gonzalez was ordered not to apply for NFA membership, associate membership or principal status with any NFA member for three years. If Gonzalez is granted NFA membership, associate membership or principal status after the three-year temporary bar, he was ordered to pay a $10,000 fine, due and payable 30 days after he is granted NFA membership, associate membership or principal status with any NFA Member.

Gonzalez was further ordered to tape record any and all conversations with customers or prospective customers for one year. Gonzalez shall also cause any and all APs sponsored by any Member of which he is a principal to tape record any and all conversations with customers or prospective customers during the one-year period. Gonzalez must promptly produce such recordings to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which Gonzalez is an NFA Member or principal or an Associate of an NFA Member will be counted.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, Kaiser filed an Answer to the Complaint in which she denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, Levine filed an Answer to the Complaint in which she denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On January 10, 2008, Marchetto filed an Answer to the Complaint in which she denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 21, 2008, Comtrust and Mehler filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, Rautbord filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On December 12, 2007, Santovito filed an Answer to the Complaint in which he denied the material allegations contained therein.

ANSWER:

On February 11, 2008, Santovito filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On March 23, 2009, Gee was permanently barred from NFA membership, associate membership and from acting as a principal of an NFA Member. Smith was ordered to pay a $10,000 fine and is suspended from NFA membership and associate membership and may not act as a principal of an NFA Member for six months. For a period of one year (exclusive of any period during which Smith is suspended or is not an NFA Member or an Associate Member), Smith may not be an Associate of an NFA Member unless Smith's sponsor agrees in writing to tape record all conversations that occur between Smith and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA. During the one year period, Smith may not be an NFA Member or a principal of an NFA Member unless that Member agrees in writing to tape record all conversations between the firm's APs and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA.

Santovito was barred from NFA membership and associate membership and may not act as a principal of an NFA Member for two years. Should Santovito be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of his two-year bar, he must pay a $20,000 fine, due and payable within 30 days after he is granted NFA membership associate membership or principal status. For six months (exclusive of any period during which Santovito is not an NFA Member or an Associate Member), Santovito may not be an NFA Member, a principal of an NFA Member or a branch office manager of an NFA Member unless that Member agrees in writing to tape record all conversations between the firm's APs and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, Smith filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On March 23, 2009, Gee was permanently barred from NFA membership, associate membership and from acting as a principal of an NFA Member. Smith was ordered to pay a $10,000 fine and is suspended from NFA membership and associate membership and may not act as a principal of an NFA Member for six months. For a period of one year (exclusive of any period during which Smith is suspended or is not an NFA Member or an Associate Member), Smith may not be an Associate of an NFA Member unless Smith's sponsor agrees in writing to tape record all conversations that occur between Smith and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA. During the one year period, Smith may not be an NFA Member or a principal of an NFA Member unless that Member agrees in writing to tape record all conversations between the firm's APs and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA.

Santovito was barred from NFA membership and associate membership and may not act as a principal of an NFA Member for two years. Should Santovito be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of his two-year bar, he must pay a $20,000 fine, due and payable within 30 days after he is granted NFA membership associate membership or principal status. For six months (exclusive of any period during which Santovito is not an NFA Member or an Associate Member), Santovito may not be an NFA Member, a principal of an NFA Member or a branch office manager of an NFA Member unless that Member agrees in writing to tape record all conversations between the firm's APs and both existing and potential customers; retain each tape for two years from the date the tape is created; and make the tapes available to NFA.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On February 11, 2008, UCC filed an Answer to the Complaint in which the firm denied the material allegations contained therein.

DECISION:

On November 12, 2008, UCC and Comtrust agreed to withdraw from NFA membership and never again apply for NFA membership, associate membership or principal status with any NFA Member. Mehler agreed to withdraw from NFA associate membership and principal status with any and all NFA Members and not apply for NFA membership, associate membership or principal status with any NFA Member for two years. Should Mehler attain NFA membership, associate membership or principal status with any NFA Member in the future, he agreed to pay a $500,000 fine, due and payable in full within thirty days of attaining any such status.

Kaiser, Burstein and Marchetto were each barred from NFA membership, associate membership or principal status with any NFA Member for two years. Levine and Rautbord were each barred from NFA membership, associate membership or principal status with any NFA Member for one year.

Kaiser, Burstein, Levine, Rautbord and Marchetto were each ordered to tape record any and all conversations with customers or prospective customers for six months. They were also ordered to cause any and all APs sponsored by any Member of which they are a principal during the six-month period, to tape record any and all conversations with customers or prospective customers during that period. They were also ordered to promptly produce any and all recordings required to NFA in a manner in which the participants and dates of the conversations can be readily identified. Only periods during which they are an NFA Member or a principal or an Associate of an NFA Member will be counted.

Should they be granted NFA membership, associate membership or principal status with any NFA Member following the expiration of their respective bars, Kaiser and Marchetto were ordered to pay a $10,000 fine, Levine and Rautbord were ordered to pay a $5,000 fine and Burstein was ordered to pay a $20,000 fine. The fines are due and payable in full thirty days after they are granted NFA membership, associate membership or principal status with an NFA Member.

COMPLAINT:

On December 5, 2007, NFA issued a Complaint charging UCC, Burstein, Gonzalez, Levine, Marchetto, Rautbord, S. Smith and Vecchio with making deceptive and misleading sales solicitations. In addition, the Complaint charged UCC and Levine with encouraging an individual to supply inaccurate financial information. The Complaint also charged UCC and Rautbord with using deceptive and misleading promotional material. The Complaint further charged UCC with allowing an unregistered individual to act in a capacity requiring registration as an AP. Also, the Complaint charged UCC, Mehler, Kaiser, Santovito and Gee with failing to diligently supervise employees and agents in the conduct of their commodity futures activities. Finally, the Complaint charged Comtrust with failure to uphold high standards of commercial honor and just and equitable principles of trade.

DECISION:

On February 6, 2008, Vecchio was ordered not to apply for NFA membership, associate membership or principal status with any NFA Member at any time in the future.