Case Summary

COMPLAINT:

On June 28, 2007, NFA issued a Complaint charging Sterling, Marshall, McCullough, Miles and Scott with making misleading sales solicitations. The Complaint charged Sterling and Marshall with failing to uphold high standards of commercial honor and just and equitable principles of trade; using high-pressure sales tactics; and failure to supervise. Finally, the Complaint charged Sterling with failure to maintain current books and records and failure to properly calculate its adjusted net capital.

ANSWER:

On August 14, 2007, Sterling and Marshall filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On July 8, 2008, Sterling was permanently barred from NFA membership and associate membership and from acting as a principal of an NFA Member. Marshall was ordered not to apply for NFA Membership or associate membership or act as a principal of an NFA Member for three years. During the three-year membership bar, Marshall may not act in any capacity requiring registration, nor act as a principal of an NFA Member.

If after the expiration of the three-year membership bar Marshall is granted NFA membership or associate membership, or becomes a principal of an NFA Member, he must pay a $50,000 fine to NFA, due and payable thirty days after he is granted NFA membership or associate membership, or becomes a principal of an NFA Member.

If and when Marshall again becomes an NFA Member or Associate, he must tape record, for one year, all conversations between himself and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The one-year taping requirement begins on the date Marshall again becomes an NFA Member or Associate, and continues thereafter for one year. Only periods of time when Marshall is registered and actively soliciting customers on a full-time basis will be counted.

If Marshall becomes a principal of an NFA Member, he must cause all APs of that firm - and any other firm of which he is a principal - to tape record, for one year, all conversations that occur between them and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The one-year taping requirement applies to each and every firm of which Marshall becomes a principal and will begin on the date he becomes a principal of each firm, respectively. Only periods of time when Marshall is a principal of that particular firm and that firm is actively soliciting customers will be counted. The taping requirements expire on December 31, 2012.

COMPLAINT:

On June 28, 2007, NFA issued a Complaint charging Sterling, Marshall, McCullough, Miles and Scott with making misleading sales solicitations. The Complaint charged Sterling and Marshall with failing to uphold high standards of commercial honor and just and equitable principles of trade; using high-pressure sales tactics; and failure to supervise. Finally, the Complaint charged Sterling with failure to maintain current books and records and failure to properly calculate its adjusted net capital.

ANSWER:

On August 16, 2007, McCullough filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On July 8, 2008, McCullough was ordered not to apply for NFA Membership or associate membership or act as a principal of an NFA Member for one year. During the one-year membership bar, McCullough may not act in any capacity requiring registration, nor act as a principal of an NFA Member.

If after the expiration of the one-year membership bar McCullough is granted NFA membership or associate membership, or becomes a principal of an NFA Member, he must pay a $10,000 fine to NFA, due and payable thirty days after he is granted NFA membership or associate membership, or becomes a principal of an NFA Member.

If and when McCullough again becomes an NFA Member or Associate, he must tape record, for one year, all conversations between himself and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The one-year taping requirement begins on the date McCullough again becomes an NFA Member or Associate, and continues thereafter for one year. Only periods of time when McCullough is registered and actively soliciting customers on a full-time basis will be counted.

If McCullough becomes a principal of an NFA Member, he must cause all APs of that firm - and any other firm of which he is a principal - to tape record, for one year, all conversations that occur between them and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The one-year taping requirement applies to each and every firm of which McCullough becomes a principal and will begin on the date he becomes a principal of each firm, respectively. Only periods of time when McCullough is a principal of that particular firm and that firm is actively soliciting customers will be counted. The taping requirements expire on December 31, 2012.

COMPLAINT:

On June 28, 2007, NFA issued a Complaint charging Sterling, Marshall, McCullough, Miles and Scott with making misleading sales solicitations. The Complaint charged Sterling and Marshall with failing to uphold high standards of commercial honor and just and equitable principles of trade; using high-pressure sales tactics; and failure to supervise. Finally, the Complaint charged Sterling with failure to maintain current books and records and failure to properly calculate its adjusted net capital.

ANSWER:

On July 26, 2007, Miles filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On July 8, 2008, Miles was ordered not to apply for NFA Membership or associate membership or act as a principal of an NFA Member for one year. During the one-year membership bar, Miles may not act in any capacity requiring registration, nor act as a principal of an NFA Member.

If after the expiration of the one-year membership bar Miles is granted NFA membership or associate membership, or becomes a principal of an NFA Member, he must pay a $5,000 fine to NFA, due and payable thirty days after he is granted NFA membership or associate membership, or becomes a principal of an NFA Member.

If and when Miles again becomes an NFA Member or Associate, he must tape record, for six months, all conversations between himself and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The six-month taping requirement begins on the date Miles again becomes an NFA Member or Associate, and continues thereafter for six months. Only periods of time when Miles is registered and actively soliciting customers on a full-time basis will be counted. Although Miles is required to tape even during periods when he is only soliciting customers on a part-time basis, any taping done during these periods will not be counted or credited to Miles in calculating his six-month taping obligation.

If Miles becomes a principal of an NFA Member, he must cause all APs of that firm - and any other firm of which he is a principal - to tape record, for six months, all conversations that occur between them and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The six-month taping requirement applies to each and every firm of which Miles becomes a principal and will begin on the date he becomes a principal of each firm, respectively. Only periods of time when Miles is a principal of that particular firm and that firm is actively soliciting customers will be counted. The taping requirements expire on December 31, 2012.

COMPLAINT:

On June 28, 2007, NFA issued a Complaint charging Sterling, Marshall, McCullough, Miles and Scott with making misleading sales solicitations. The Complaint charged Sterling and Marshall with failing to uphold high standards of commercial honor and just and equitable principles of trade; using high-pressure sales tactics; and failure to supervise. Finally, the Complaint charged Sterling with failure to maintain current books and records and failure to properly calculate its adjusted net capital.

ANSWER:

On August 24, 2007, Scott filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On July 8, 2008, Scott was suspended from NFA associate membership for sixty days. Scott was also ordered to pay a $5,000 fine.

After completing the sixty-day suspension, Scott was ordered to tape record, for six months, all conversations between himself and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The six-month taping requirement begins on the date that his suspension is completed, and will continue thereafter for six months.

Scott was also ordered to cause all APs of Marjenhoff Scott Financial to tape record, for six months, all conversations that occur between them and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The six-month taping requirement begins thirty days after the issuance of the Decision and continues for six months.

COMPLAINT:

On June 28, 2007, NFA issued a Complaint charging Sterling, Marshall, McCullough, Miles and Scott with making misleading sales solicitations. The Complaint charged Sterling and Marshall with failing to uphold high standards of commercial honor and just and equitable principles of trade; using high-pressure sales tactics; and failure to supervise. Finally, the Complaint charged Sterling with failure to maintain current books and records and failure to properly calculate its adjusted net capital.

ANSWER:

On August 14, 2007, Sterling and Marshall filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On July 8, 2008, Sterling was permanently barred from NFA membership and associate membership and from acting as a principal of an NFA Member. Marshall was ordered not to apply for NFA Membership or associate membership or act as a principal of an NFA Member for three years. During the three-year membership bar, Marshall may not act in any capacity requiring registration, nor act as a principal of an NFA Member.

If after the expiration of the three-year membership bar Marshall is granted NFA membership or associate membership, or becomes a principal of an NFA Member, he must pay a $50,000 fine to NFA, due and payable thirty days after he is granted NFA membership or associate membership, or becomes a principal of an NFA Member.

If and when Marshall again becomes an NFA Member or Associate, he must tape record, for one year, all conversations between himself and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The one-year taping requirement begins on the date Marshall again becomes an NFA Member or Associate, and continues thereafter for one year. Only periods of time when Marshall is registered and actively soliciting customers on a full-time basis will be counted.

If Marshall becomes a principal of an NFA Member, he must cause all APs of that firm - and any other firm of which he is a principal - to tape record, for one year, all conversations that occur between them and existing or potential customers; retain the tapes for one year; and make the tapes available to NFA. The one-year taping requirement applies to each and every firm of which Marshall becomes a principal and will begin on the date he becomes a principal of each firm, respectively. Only periods of time when Marshall is a principal of that particular firm and that firm is actively soliciting customers will be counted. The taping requirements expire on December 31, 2012.