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January 12, 2005
Customers receive $1.8 million through NFA's restitution program in 2004
January 12, Chicago - National Futures Association (NFA), the independent self-regulatory organization for the U.S. futures industry, announced that it issued $1.8 million in restitution funds to 1,300 customers during 2004. NFA's restitution program helps customers involved in commodity fraud cases recover some of the money they lost dealing with dishonest salespeople. Since the program started in 1988, NFA has paid more than $5.8 million to over 5,000 investors.
"Under normal circumstances, court-appointed receivers administer the return of money to harmed investors and charge their fees to the cases, reducing the amount available for distribution," says NFA President and CEO Daniel J. Roth. "Because NFA does not charge any fees for administering the restitution service, we are able to return as much money as possible to the victims."
NFA's service usually applies to judgments awarded in cases brought by the Commodity Futures Trading Commission (CFTC) involving commodity fraud. As part of the resolution of the case, NFA is named to administer the restitution process. In most cases, the CFTC has already identified the investors, how much money they have lost and the amount of their pro rata share. NFA makes sure that the terms of the order are fulfilled.
"The CFTC values our long-time collaborative relationship with NFA," says CFTC Acting Chairman Sharon Brown-Hruska. "NFA's work on these matters enables us to return to customers at least some of the proceeds of fraudulent schemes in the fairest way possible."
"Although the majority of these cases do not involve NFA Members," adds Roth, "offering the restitution program reflects NFA's commitment to market integrity and investor protection."
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the derivatives markets. For more information about NFA, please visit its Web site at www.nfa.futures.org.