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January 23, 2012
NFA takes emergency enforcement action against Georgia firm Crabapple Capital Group LLC and its principal, Robert Allen Christy
January 23, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against Crabapple Capital Group LLC (CCG), a commodity pool operator/commodity trading advisor located in Milton, Georgia, and its principal Robert Allen Christy.
NFA has taken the Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) to protect investors in futures and forex accounts and other investment vehicles controlled by CCG and/or Christy because of their failure to cooperate with NFA in its examination of the firm by failing to produce information NFA requested from them. Additionally, CCG and Christy have provided NFA with false and misleading information concerning CCG's performance results and the firm's operations.
During the course of its investigation, NFA has learned that CCG and Christy were distributing a disclosure document dated October 2011 that had not been approved by NFA for use. The disclosure document and other promotional material listed trading performance for purported client accounts in futures and other investments with annual returns that ranged from about 10% to over 27% for calendar years 2006 through September 2011. To date, however, Christy has failed to produce records to fully support the disclosure document's performance claims.
In addition, the October 2011 disclosure document referred to Christy's association with the Christy Investment Group Ltd. (CIG) and claimed CIG was a registered investment advisory firm managing "portfolios for high net worth clients and small to mid-size institutional investors." A website referenced in CCG's marketing materials, (www.christyinvestments.com), also referred to CIG as a "boutique investment advisory firm." However, the Securities and Exchange Commission's investment adviser registration records indicated CIG has no current registration.
CCG and Christy are prohibited from soliciting or accepting any funds from customers or investors for any managed accounts, commodity pools, or other investment vehicles and from placing any trades on behalf of customers, commodity pools, or investors. Additionally, CCG and Christy are prohibited from disbursing or transferring any funds over which they exercise control without prior approval from NFA.
CCG and Christy may request a hearing before NFA's Hearing Committee.
The following Compliance staff members are responsible for this case: Chris Reiff (312-781-1497) and Jennifer Sunu (312-781-1402).