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For Immediate Release
June 4, 2009

For more information contact:
Ruth Hong (312) 781-1371,

NFA takes emergency enforcement action against Texas commodity trading advisors and their presidents

June 4, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against M25 Investments, Inc. (M25), M37 Investments LLC (M37), David P. Fearis, III, president of M25 and director of M37, and Ronald L. Larson, president of M37. Both firms are located in Waxahachie, Texas.

The Member Responsibility Action (MRA) is deemed necessary to protect the investing public and futures markets based on evidence that M25 and M37 may be operating a Ponzi scheme in which they obtained loans from unsophisticated persons and in return gave these persons unsecured promissory notes that M25 and M37 have promised to repay. However, through NFA's investigation, it appears that M25 and M37, including Fearis and Larson, have funneled the borrowed funds to other entities controlled by principals of the firms and that there appears to be an approximate $3.7 million shortfall between what is owed on the notes and the combined assets of M25 and M37. In addition, M25, M37, Fearis and Larson continue to solicit loans, even though they have insufficient assets to repay the existing loans and have failed to disclose this to their existing and prospective lenders.

Effective immediately, M25, M37, Fearis and Larson are prohibited from soliciting or accepting funds from customers and any loans from lenders without prior NFA approval and are prohibited from placing any trades for themselves or customers. They are also prohibited from disbursing or transferring any accounts which are in the names of or controlled by either M25 or M37.

The MRA will remain in effect until M25 and M37 have demonstrated that they are in complete compliance with all NFA Requirements. M25 and M37 are entitled to a prompt hearing on this matter before NFA's Hearing Committee.

The complete text of the MRA can be found on NFA's website (

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