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December 04, 2007
NFA permanently bars American National Trading Corp. and fines several of its principals
December 4, Chicago - National Futures Association (NFA) has permanently barred American National Trading Corp. (ANTC), a Futures Commission Merchant located in Century City, California, from NFA membership. The Decision, issued by an NFA Hearing Panel, is based on a Complaint filed in November 2006 and a settlement offer submitted by ANTC and several of its principals and associated persons (APs), Don Varden, Guy Zummo and Stephen T. Roy.
The Panel found that ANTC, and its brokers made misleading sales solicitations that exaggerated profit potential of trading options, downplayed the risk of loss and failed to disclose that the majority of ANTC customers lost money. Additionally, the Panel found that ANTC, Varden, Zummo and Roy failed to supervise ANTC's employees.
NFA ordered Varden to pay a fine of $40,000. Zummo and Roy must each pay a fine of $20,000. Varden, Zummo and Roy are also barred from acting as a principal of an NFA Member until May 2009.
In a related Decision, NFA permanently barred Michael Vardanian, a former AP of ANTC, from NFA membership. The Decision, issued by an NFA Hearing Panel, is based on the same sales practice Complaint filed in November 2006 against ANTC. The Panel found that Vardanian made misleading sales solicitations including the failure to disclose that the majority of ANTC customers and over 90 percent of Vardanian's customers lost money.
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