Case Summary

COMPLAINT:

On September 30, 2009, NFA issued a Complaint charging CF&O with failure to keep accurate financial records and maintain records that properly identified the sources of CF&O's capital; failure to list Financial Robotics, Robert Copeland and Mark Rice as principals of CF&O; and failure to maintain the required minimum adjusted net capital and file telegraphic notice when it knew or should have known it was under its net capital requirement. The Complaint also charged CF&O, Wright and Swanson with failure to adequately supervise CF&O's operations.

ANSWER:

On October 30, 2009, CF&O and Wright filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On April 22, 2010, CF&O was ordered to immediately withdraw from NFA membership and was permanently barred from NFA membership and from acting as a principal of an NFA Member. Wright was ordered to immediately withdraw from NFA associate membership and as a principal of CF&O and was ordered not to apply for NFA membership and associate membership or act as a principal of an NFA Member for five years. Wright was also ordered to pay a $10,000 fine if he reapplies for NFA membership or associate membership or seeks to become a principal of an NFA Member after the five-year bar.

COMPLAINT:

On September 30, 2009, NFA issued a Complaint charging CF&O with failure to keep accurate financial records and maintain records that properly identified the sources of CF&O's capital; failure to list Financial Robotics, Robert Copeland and Mark Rice as principals of CF&O; and failure to maintain the required minimum adjusted net capital and file telegraphic notice when it knew or should have known it was under its net capital requirement. The Complaint also charged CF&O, Wright and Swanson with failure to adequately supervise CF&O's operations.

ANSWER:

On October 23, 2009, Swanson filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On July 27, 2010, a designated panel of NFA's Hearing Committee issued a Decision as to Swanson after a hearing was held. Swanson was ordered not to be a principal of an NFA Member or act in a capacity that requires him to be listed as a principal for five years and was ordered to pay a $3,000 fine.

COMPLAINT:

On September 30, 2009, NFA issued a Complaint charging CF&O with failure to keep accurate financial records and maintain records that properly identified the sources of CF&O's capital; failure to list Financial Robotics, Robert Copeland and Mark Rice as principals of CF&O; and failure to maintain the required minimum adjusted net capital and file telegraphic notice when it knew or should have known it was under its net capital requirement. The Complaint also charged CF&O, Wright and Swanson with failure to adequately supervise CF&O's operations.

ANSWER:

On October 30, 2009, CF&O and Wright filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On April 22, 2010, CF&O was ordered to immediately withdraw from NFA membership and was permanently barred from NFA membership and from acting as a principal of an NFA Member. Wright was ordered to immediately withdraw from NFA associate membership and as a principal of CF&O and was ordered not to apply for NFA membership and associate membership or act as a principal of an NFA Member for five years. Wright was also ordered to pay a $10,000 fine if he reapplies for NFA membership or associate membership or seeks to become a principal of an NFA Member after the five-year bar.