Case Summary

COMPLAINT -

On April 13, 2006, NFA issued a Complaint charging Konst and Trading Alliance, Inc. with using profit claims in web based promotional material without giving a balanced discussion of risk of loss; failing to properly identify hypothetical trading results; failing to include the required hypothetical disclaimer statement; and failing to include the past performance results of all customer accounts directed over the previous five years.

ANSWER -

On May 4, 2006, Trading Alliance and Konst filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION -

On February 26, 2007, Trading Alliance was ordered to never reapply for NFA membership or act as a principal of an NFA Member, and was permanently barred from NFA membership and from acting as a principal of an NFA Member. Konst was ordered not to apply for NFA membership or associate membership, or act as a principal of an NFA Member, for one year. If Konst again becomes an NFA Member or Associate, he, and any firm of which he is a principal, must - for two years - submit to NFA for its pre-review and approval all promotional material (written and web-based), which he, and/or any firm of which he is a principal, intends to disseminate, post on a web site, or otherwise distribute to customers, prospective customers, or the public; and not disseminate, post on a web site, distribute to customers, prospective customers, or the public, or otherwise use any promotional material, until first pre-reviewed and approved by NFA.

COMPLAINT -

On April 13, 2006, NFA issued a Complaint charging Konst and Trading Alliance, Inc. with using profit claims in web based promotional material without giving a balanced discussion of risk of loss; failing to properly identify hypothetical trading results; failing to include the required hypothetical disclaimer statement; and failing to include the past performance results of all customer accounts directed over the previous five years.

ANSWER -

On May 4, 2006, Trading Alliance and Konst filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION -

On February 26, 2007, Trading Alliance was ordered to never reapply for NFA membership or act as a principal of an NFA Member, and was permanently barred from NFA membership and from acting as a principal of an NFA Member. Konst was ordered not to apply for NFA membership or associate membership, or act as a principal of an NFA Member, for one year. If Konst again becomes an NFA Member or Associate, he, and any firm of which he is a principal, must - for two years - submit to NFA for its pre-review and approval all promotional material (written and web-based), which he, and/or any firm of which he is a principal, intends to disseminate, post on a web site, or otherwise distribute to customers, prospective customers, or the public; and not disseminate, post on a web site, distribute to customers, prospective customers, or the public, or otherwise use any promotional material, until first pre-reviewed and approved by NFA.