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NOTICE OF MEMBER RESPONSIBILITY ACTION:
On October 26, 2011, NFA issued a Member Responsibility Action ("MRA") against TS Capital Management LLC ("TS Management") whereby:
1. TS Management is 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. TS Management is prohibited from disbursing or transferring any funds of customers, investors, commodity pool participants, or commodity pools over which it exercises control, without prior approval from NFA;
3. TS Management is prohibited from disbursing or transferring any funds from any bank accounts, or brokerage accounts (both securities and commodities), in its name or in the name of any other individual or entity over which it exercises control, without prior approval from NFA; and
4. TS Management is required to provide copies of this MRA via overnight courier to all customers and participants in any pools that the firm operates or controls, including the firm’s proprietary fund, all investors in any other funds or investment vehicles over which TS Management or any of its principals exercises control, and all financial institutions in which TS Management maintains any accounts either in its name or under its control.
This action is effective immediately and deemed necessary to protect investors in commodity pools and other investment vehicles controlled by TS Management and/or its unlisted principal, John Stroud, a/k/a John David Stroud or David Stroud (“Stroud”), because of their failure to cooperate with NFA in its investigation of TS Management by failing to produce books and records and other information that NFA has requested from them. Additionally, TS Management and Stroud have provided NFA with false and misleading information during the course of NFA's examination and subsequent investigation of the firm. As a consequence, NFA has been unable to determine whether TS Management and Stroud have acted properly in their dealings with investors or whether they have misappropriated investors' funds and provided false information to NFA and to investors concerning their investments.
The MRA will remain in effect until such time as TS Management has demonstrated to the satisfaction of NFA that it is in complete compliance with all NFA Requirements.