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May 22, 2013
NFA takes emergency enforcement action against California firm Light Tower Investments, Inc. and one of its principals, Klaus P. Weyers
May 22, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against Light Tower Investments, Inc. (LTI), an NFA Member commodity pool operator (CPO) and commodity trading advisor (CTA) located in Escondido, California, and Klaus P. Weyers (Weyers), a principal and associated person (AP) of LTI.
NFA has taken the Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) to protect customers of LTI since LTI and Weyers have failed to cooperate fully during the course of NFA's attempted examination and investigation of the firm.
Specifically, NFA believes that LTI was operating a commodity pool–LTI Capital–although LTI and Weyers failed to list the pool with NFA or submit a Pool Disclosure Document to NFA for review and acceptance, or file an exemption from CFTC registration. In addition, NFA believes that LTI and Weyers had been managing several accounts as a CTA since June 2011, even though they only recently disclosed to NFA that LTI was active as a CTA.
On May 8, 2013, NFA contacted Weyers and informed him that an examination of LTI would commence on May 13, 2013. NFA also sent Weyers an email listing documents that NFA required in connection with the exam. Although Weyers initially cooperated with NFA by providing some of the requested documents, LTI and Weyers have failed to produce documents necessary for NFA to conduct its examination. On May 19, Weyers sent an email to NFA stating that he would no longer cooperate with NFA's investigation.
LTI and Weyers, and any person acting on their behalf, are prohibited from soliciting or accepting any funds from customers, pool participants or investors. They also are prohibited from disbursing or transferring any funds over which they or any person acting on their behalf exercises control without prior approval from NFA.
The MRA/ARA will remain in effect until such time as LTI and Weyers have demonstrated to the satisfaction of NFA that they are in complete compliance with all NFA Requirements.
LTI and Weyers may request a hearing before NFA's Hearing Committee.