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For Immediate Release
October 27, 2011

For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org

NFA takes emergency enforcement action against Auburn, Alabama firm, TS Capital Management

October 27, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against TS Capital Management LLC (TS Capital Management), a Commodity Pool Operator located in Auburn, Alabama. The Member Responsibility Action (MRA) is deemed necessary to protect investors in commodity pools and other investment vehicles controlled by TS Capital Management and/or John Stroud (also known as John David Stroud or David Stroud). Stroud is an owner and the CEO of the firm.

TS Capital Management has failed to cooperate with NFA in its audit and investigation of the firm by failing to produce books and records and other information requested by NFA. During its audit, NFA learned that TS Capital Management is affiliated with several unregistered entities operated by Stroud. TS Capital Management and Stroud provided NFA with false and misleading information concerning certain transactions involving the firm and the activities of its affiliates. As a result, NFA has been unable to complete its investigation into whether or not TS Capital Management and Stroud have acted properly in their dealings with investors; whether they misused investors' funds; whether they provided false information to investors concerning the status of their investments; and whether TS Capital Management is in full compliance with NFA Requirements.

TS Capital Management is prohibited from soliciting or accepting any funds or investments for any pools or other investment vehicles over which TS Capital Management or any of its principals, including Stroud, exercises control and from placing any trades. The MRA also prohibits TS Capital Management from disbursing or transferring any funds of customers, investors, pool participants or commodity pools over which it exercises control without prior NFA approval.

The MRA will remain in effect until such time TS Capital Management demonstrates that the firm is in complete compliance with all NFA Requirements. TS Capital Management may request a prompt hearing before NFA's Hearing Committee.

The complete text of the MRA can be viewed on NFA's website (www.nfa.futures.org).

The following Compliance staff members are responsible for this case: Vilia Sutkus-Kiela, Compliance Manager (312-781-1346) and Shane O'Mara, NFA Investigations Supervisor (312-781-1487).

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

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