Case Summary

MAGMA FUND ADVISORS LTD NFA 08BCC00032 NFA ID: 0389473

 Respondent/Effective Date Summary 
 NFA IDRespondentEffective Date
 0389473MAGMA FUND ADVISORS LTD02/26/2009
 0314480MUTHEMBA, DESMOND MAINA02/26/2009
 Rule Summary 
 NFA IDRespondentRule Type
 0389473MAGMA FUND ADVISORS LTD• C.R.2-2(a) - CHEAT,FRAUD DECEIVE CUSTOMERS
  • C.R.2-29(b)(4) - USE OF HYPOTHETICAL RESULTS
  • C.R.2-4 - HIGH STDS. OF COMMERCIAL HONOR
  • C.R.2-2(f) - FALSE INFORMATION TO NFA/AGENTS
  • C.R.2-9(a) - SUPERVISION OF EMPLOYEES
  • R.R.208 - CHANGES REQUIRING NEW REGISTRATION
  • C.R.2-29(b)(2) - MISSTATEMT/OMISSION OF FACT PROMP
  • C.R.2-29(b)(3) - BALANCED DISCUSSION RE PROFIT/RISK
 0314480MUTHEMBA, DESMOND MAINA• C.R.2-29(b)(3) - BALANCED DISCUSSION RE PROFIT/RISK
  • C.R.2-29(b)(4) - USE OF HYPOTHETICAL RESULTS
  • C.R.2-29(b)(2) - MISSTATEMT/OMISSION OF FACT PROMP
  • C.R.2-9(a) - SUPERVISION OF EMPLOYEES
  • C.R.2-2(a) - CHEAT,FRAUD DECEIVE CUSTOMERS
 Committee Summary 
 NFA IDRespondentCommittee
 0389473MAGMA FUND ADVISORS LTD• BUSINESS CONDUCT COMMITTEE
 0314480MUTHEMBA, DESMOND MAINA• BUSINESS CONDUCT COMMITTEE
 Action Summary 
 NFA IDRespondentAction Types
 0389473MAGMA FUND ADVISORS LTD• GENERAL CONDUCT
  • SALES PRACTICE
  • REGISTRATION
 0314480MUTHEMBA, DESMOND MAINA• SALES PRACTICE
 Penalty/Event Summary 
 NFA IDRespondentPenalty/EventEvent Date
 0389473MAGMA FUND ADVISORS LTD• PERMANENT WITHDRAWAL FROM NFA MEMBERSHIP02/11/2009
 0314480MUTHEMBA, DESMOND MAINA• TEMPORARY BAR FROM NFA ASSOCIATE MEMBERSHIP 2 YRS02/11/2009
  • TEMPORARY BAR FROM NFA MEMBERSHIP 5 YRS02/11/2009
  • TEMPORARY BAR FROM PRINCIPAL STATUS 5 YRS02/11/2009
 Narrative Summary 
Narrative for 0389473 - MAGMA FUND ADVISORS LTD
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS. FOR A COPY OF DOCUMENTS, CONTACT NFA'S INFORMATION CENTER.**

COMPLAINT:

On December 22, 2008, NFA issued a Complaint charging Magma with providing false information to NFA; failure to list a principal; failure to uphold high standards of commercial honor and just and equitable principles of trade; and failure to list principals. The Complaint also charged Magma and Muthemba with using deceptive and unbalanced promotional material and failure to supervise.

DECISION:

On February 11, 2009, Magma was ordered to withdraw from NFA membership and never apply for NFA membership or principal status with any NFA Member in the future. Muthemba was ordered to withdraw his NFA membership and principal status with an NFA member and not apply for NFA associate membership for two years from the date of his withdrawal. Muthemba was further ordered not to apply for NFA membership or principal status with any NFA Member for five years from the date of his withdrawal.

 
Narrative for 0314480 - MUTHEMBA, DESMOND MAINA
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS. FOR A COPY OF DOCUMENTS, CONTACT NFA'S INFORMATION CENTER.**

COMPLAINT:

On December 22, 2008, NFA issued a Complaint charging Magma with providing false information to NFA; failure to list a principal; failure to uphold high standards of commercial honor and just and equitable principles of trade; and failure to list principals. The Complaint also charged Magma and Muthemba with using deceptive and unbalanced promotional material and failure to supervise.

DECISION:

On February 11, 2009, Magma was ordered to withdraw from NFA membership and never apply for NFA membership or principal status with any NFA Member in the future. Muthemba was ordered to withdraw his NFA membership and principal status with an NFA member and not apply for NFA associate membership for two years from the date of his withdrawal. Muthemba was further ordered not to apply for NFA membership or principal status with any NFA Member for five years from the date of his withdrawal.

 
 Case Documents Summary 
 NFA IDRespondentDocument Type
 0389473MAGMA FUND ADVISORS LTDCOMPLAINT
 0389473MAGMA FUND ADVISORS LTDDECISION
 0314480MUTHEMBA, DESMOND MAINACOMPLAINT
 0314480MUTHEMBA, DESMOND MAINADECISION