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NOTICE OF MEMBER RESPONSIBILITY ACTION:
On June 25, 2009, NFA issued a Member Responsibility Action ("MRA") against Strongbow Investments GP LLC ("Strongbow") whereby:
1. Strongbow is prohibited from soliciting or accepting any customer or pool participants’ funds or any funds for investment in the Firm;
2. Strongbow is prohibited from placing trades on behalf of any customers or pools, except for liquidation purposes;
3. Strongbow is prohibited from disbursing or transferring any funds from any accounts (bank, trading, or any other types of accounts) in the name of Strongbow, any pools operated by Strongbow, including but not limited to, Strongbow Investments Fund II LP (“Fund II”) and Strongbow Investments Fund III LP (“Fund III”), or in the name of any customers of Strongbow without prior approval from NFA; and
4. Strongbow is required to provide copies of this MRA via overnight courier to a) all customers having accounts over which Strongbow exercises control, b) to all pool participants in any pools that Strongbow operates or over which it exercises control, c) to all persons that have invested money in Strongbow, and d) to all banks and other financial institutions with which money is on deposit in the name of any pool that Strongbow operates or over which its exercises control, in the name of Strongbow, or in the name of any customer of Strongbow and over which Strongbow exercises control or trading discretion;
5. In taking any action under this MRA, Strongbow must act in the best interests of its customers.
This action is effective immediately and is deemed necessary to protect the commodity futures markets, customers, or other Members or Associates because Strongbow has accepted money for investment in a commodity pool in its name, rather than the name of the pool and comingled the assets of the commodity pool it operates with the Firm's assets and the assets of the Firm's owner and principal Patrick Dailey ("Dailey"). Additionally, Strongbow has failed to provide sufficient financial records to support claimed balances and investments by a pool operated by Strongbow, and records that are required to be maintained by a CPO. It appears that Strongbow and Dailey have acted in a manner that was contrary to the interests of Strongbow's customers by making unsecured loans to Dailey from the assets of both the Firm and the pool it operates for Dailey's personal use without providing full disclosure to the customers. Further, Strongbow and Dailey have provided misleading and conflicting information to NFA, and Dailey is acting in a manner that requires registration as an AP of Strongbow but has failed to register as such and is not currently an NFA Associate.
The MRA will remain in effect until such time as Strongbow has demonstrated to the satisfaction of NFA that they can accurately account for the amount owed to all participants in Fund II, including any amounts invested in the Firm, and that the Firm is in complete compliance with all NFA Requirements. |