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March 31, 2008
NFA permanently bars Majestic Commodity Corporation, a Florida futures firm, and its owner; issues sanctions against firm's associates
March 31, Chicago - National Futures Association (NFA) has permanently barred from NFA membership, Majestic Commodity Corporation (Majestic), an Introducing Broker member located in Delray Beach, Florida. NFA also permanently barred Michael H. Sims, the firm's owner, and Michael J. Vallee, an associate of the firm. In addition, NFA barred Ryan Ehrhart and Thomas E. Kline for a period of four years and Ian F. Betty for a period of three years. Ehrhart, Kline and Betty were all associates of Majestic. The Decision, issued by an NFA Business Conduct Committee, is based on a Complaint filed in November 2007.
The Complaint alleged that Majestic, Sims, Vallee, Ehrhart, Kline, and Betty were duly served with the Complaint at the last address that each had provided to NFA but that none of them filed an answer to the Complaint. Therefore, the Committee found that Majestic, Sims, Vallee, Ehrhart, Kline and Betty waived a hearing and were deemed to have admitted the allegations of the Complaint. Accordingly, the Committee found that Majestic, Vallee, Ehrhart, Kline and Betty made deceptive, misleading and high-pressure sales solicitations. The Committee also found that Majestic conducted futures business with a suspended associate and that Majestic and Sims failed to supervise the firm's personnel.
The Decision stipulates that should Betty, Ehrhart or Kline become an NFA Member or associate after the expiration of their membership bar, they must meet several conditions, including paying a fine and tape recording all conversations with existing or potential customers for a period of one year.
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