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July 22, 2010
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NFA permanently bars South Carolina firm, Montgomery Commodities LLC; sanctions its principal
July 22, Chicago - National Futures Association (NFA) has permanently barred Montgomery Commodities LLC (Montgomery Commodities) from NFA membership. Montgomery Commodities is an Introducing Broker located in Greenville, South Carolina. David B. Montgomery, Montgomery Commodities' sole owner and listed principal, is also barred from NFA membership for a period of ten years. In the event that Montgomery reapplies for NFA membership after the ten-year bar, he must pay a fine of $250,000. In addition, if Montgomery reapplies for NFA membership, the facts alleged in the NFA Complaint shall be deemed as admitted and shall not be contested by him and may be used as the sole basis for denying him registration. The Decision, issued by an NFA Hearing Panel, is based on an NFA Complaint filed in December 2009 and a settlement offer submitted by Montgomery Commodities and Montgomery.
The Complaint alleged that between 2003 through 2009, Montgomery Commodities and Montgomery defrauded customers of potential profits by placing bunched orders, waiting to see if the trades would be profitable and then - post-execution - allocating the profitable trades to Montgomery's personal accounts. The Complaint also alleged that Montgomery Commodities and Montgomery provided false information to NFA that they never placed bunched orders.
The complete text of the Complaint, respondents' Answer and Decision, can be found on NFA's website (www.nfa.futures.org).
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.