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NOTICE OF MEMBER RESPONSIBILITY ACTION AND ASSOCIATE RESPONSIBILITY ACTION:
On May 28, 2010, NFA issued a Member Responsibility Action ("MRA") against System Capital LLC ("SC") and an Associate Responsibility Action ("ARA") against Joshua William Wallace ("Wallace") whereby:
1. Wallace and SC are prohibited from soliciting or accepting any funds from customers or investors, soliciting investments for any commodity pools or other investment vehicles, or placing any trades on behalf of customers, commodity pools, or investors except liquidation or risk reducing trades;
2. Wallace and SC are prohibited from disbursing or transferring any funds of customers, investors, or commodity pools over which they exercise control, or participants in any such commodity pools, without prior approval from NFA; and
3. Wallace is required to provide copies of this MRA/ARA via overnight courier to all: a) customers of Wallace and SC; b) all persons who solicit on behalf of Wallace or SC; and c) banks and other financial institutions in which money is on deposit in the name of Wallace, SC, or any other entity over which Wallace exercises control.
This action is effective immediately and is deemed necessary to protect customers of Wallace and SC based on the fact that Wallace and SC solicited and continue to solicit customers with patently false and misleading information. In addition, SC and Wallace have deliberately misled NFA throughout its investigation and examination of SC by providing NFA with contradictory and false information.
The MRA and ARA will remain in effect until such time as SC and Wallace have demonstrated to the satisfaction of NFA that they are in complete compliance with all NFA Requirements.