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September 21, 1999
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Laura M. Oatney
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NFA Fines AP of American Financial Trading Corp.; bars First Commercial Financial Group, Inc.
September 21, Chicago - National Futures Association ordered John J. Taddeo to pay a fine of $20,000 and to tape record all conversations with customers for a period of one year. Taddeo is a former associated person (AP) of American Financial Trading Corp, an independent introducing broker Member of NFA located in Ft. Lauderdale, Florida.
In its Complaint, NFA's Business Conduct Committee (BCC) alleged that Taddeo made misleading and deceptive sales solicitations to customers which downplayed the speculative and risky nature of options and suggested that options trading was a relatively easy way for customers to make large profits in a short time. Taddeo submitted a settlement offer in which he neither admitted nor denied the allegations in the Complaint.
In another Decision by NFA, First Commercial Financial Group, Inc. was ordered to withdraw from NFA membership and never reapply. Mark E. Rehn was also ordered not to reapply for NFA membership or Associate membership or act as a principal of an NFA Member. First Commercial is a former futures commission merchant Member of NFA located in Chicago, Illinois. Rehn was an AP of First Commercial.
The Complaint alleged that First Commercial and Rehn failed to uphold high standards of commercial honor and just and equitable principals of trade. The Complaint also alleged that First Commercial and Rehn submitted false and misleading information to NFA concerning First Commercial's adjusted net capital; failed to maintain required minimum adjusted net capital, failed to abide by the early warning requirements and failed to provide telegraphic notice to NFA; and lastly, failed to maintain adequate books and records and provide telegraphic notice of this to NFA. First Commercial and Rehn submitted settlement offers in which they neither admitted nor denied the allegations in the Complaint. The Complaint was issued in 1995, but NFA's resolution of the case was delayed pending the outcome of related Commodity Futures Trading Commission charges.
NFA is a congressionally authorized self-regulatory organization for the U.S. futures industry.