On December 13, 2000, NFA's Business Conduct Committee ("BCC") issued a Complaint to Todd A. Young ("Young"). The Complaint alleges that Young made deceptive and misleading sales solicitations, in violation of NFA Compliance Rules 2-2(a) and 2-29(a)(1).
On February 7, 2001, NFA's BCC issued a Decision to Young. The BCC found that Young was properly served with the Complaint but did not respond to the charges against him. As a result, the BCC determined that Young admitted both the factual and legal conclusions in the Complaint. The BCC ordered that Young be barred from NFA membership and Associate and principal status with any NFA Member for two years. The BCC also ordered that Young pay a $5,000 fine. In addition, the BCC ordered that should Young become an NFA Member or Associate or a principal of an NFA Member at any time in the future, he shall, for twenty-four months, tape record any and all conversations which he has with customers or prospective customers. In calculating the twenty-four month period, only periods during which he is actually a Member or an Associate or a disclosed principal of a Member shall be credited toward his fulfillment of this condition. Further, the BCC ordered that Young promptly produce any and all recordings required to be created under this provision to NFA in a manner in which the participants and dates of the conversations can be readily identified. Finally, the BCC ordered that any Member sponsoring Young or of which Young is a principal is required to execute an acknowledgement agreeing to specifically supervise Young's execution of these undertakings. This Decision becomes effective February 22, 2001.