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NOTICE OF MEMBER RESPONSIBILITY ACTION AND ASSOCIATE RESPONSIBILITY ACTION:
On November 19, 2012, NFA's Executive Committee issued a Member Responsibility Action (MRA) against KS Global Strategies, Inc. and an Associate Responsibility Action (ARA) against Salama, whereby:
1. Within 120 days of the date of issuance of this MRA and ARA, KS Global Strategies and Salama are required to repay in full all existing direct and indirect loans or advances of pool assets to KS Global Strategies, Salama or any affiliated person or entity.
2. Effective immediately, KS Global Strategies and Salama and any other person acting on behalf of either of them shall be prohibited from soliciting or accepting any customer or pool participant funds until KS Global Strategies and Salama repay in full all existing direct and indirect loans or advances of pool assets made to KS Global Strategies, Salama or any affiliated person or entity.
3. Effective immediately, KS Global Strategies and Salama are prohibited from permitting any commodity pool to use any means to make any direct or indirect loans or advances of pool assets to KS Global Strategies, Salama or any other person or entity affiliated with KS Global Strategies.
4. Effective immediately, KS Global Strategies and Salama and any other person acting on behalf of either of them shall be prohibited from disbursing or transferring any funds (other than to margin existing positions) from any customer and/or pool accounts (including bank, trading, or any other types of accounts) without prior approval from NFA.
5. KS Global Strategies and Salama are required to provide copies of this MRA and ARA and the attached affidavit via overnight courier to: all customers and pool participants in any pool which either of them operates or exercises control over; any and all pools, either registered or unregistered, in which KS Global Strategies, and/or Salama, or pools operated by either of them, are currently invested or have invested with in the past; any and all banks with accounts in the name of or controlled by KS Global Strategies and/or which hold accounts in the name of or for the benefit of any pool with which KS Global Strategies and/or Salama are affiliated with in any way; and any and all futures commission merchants and/or prime brokers which hold accounts in the name of or which are controlled by KS Global Strategies and/or which have accounts held in the name of or for the benefit of any pool with which KS Global Strategies and/or Salama are affiliated with in any way.
6. In the event that KS Global Strategies and/or Salama fail to comply with any of the requirements set forth in this MRA and ARA, the following restriction shall become effective immediately upon such failure:
• KS Global Strategies and Salama and any other person acting on behalf of either of them shall be prohibited from placing trades for any pools that they operate or accounts that they own or control or which are held in either of their names except for liquidation of existing positions.
These actions are effective immediately and are deemed necessary to protect customers because NFA has reason to believe that KS Global Strategies and Salama have engaged in, and continue to engage in, a tangled series of money transfers with affiliated entities and pools, which have ultimately resulted in at least $410,000 of prohibited loans being made to Salama and KS Global Strategies by commodity pools that they operated. Further, such amount has not been repaid to the pools by KS Global Strategies and Salama and remains outstanding.
The MRA and ARA will remain in effect until such time as KS Global Strategies and Salama demonstrate to the satisfaction of NFA that they are in complete compliance with all NFA Requirements, including, but not limited to, complete compliance with NFA Compliance Rule 2-45.
NOTICE OF TERMINATION OF MEMBER AND ASSOCIATE RESPONSIBILITY ACTION:
On March 4, 2013, NFA's Executive Committee terminated the MRA and ARA against Global Strategies and Salama. |