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April 19, 2021
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NFA orders former Stuart, Fla. commodity trading advisor JDN Capital LLC never to reapply for NFA membership and orders its former sole principal Joshua David Nicholas not to reapply for NFA membership for eight years
April 19, Chicago—NFA has ordered JDN Capital, LLC (JDN Capital), a former NFA Member commodity trading advisor located in Stuart, Fla., never to reapply for membership or act as a principal of an NFA Member. NFA also ordered JDN Capital's former sole principal and associated person Joshua David Nicholas not to reapply for membership for eight years and never to act as a principal of an NFA Member. If Nicholas seeks NFA membership following the eight-year period, he must pay a $125,000 fine.
The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA's Business Conduct Committee and a settlement offer submitted by JDN Capital and Nicholas, in which they neither admitted nor denied the allegations. The Hearing Panel found that Nicholas failed to cooperate promptly and fully with NFA, failed to observe high standards of commercial honor and just and equitable principles of trade, and provided false and misleading information to NFA during the investigation.
In September 2020, NFA issued an emergency enforcement action against JDN Capital and Nicholas, which suspended them from NFA membership and prohibited them from soliciting or accepting any funds from customers or investors for any managed accounts or from lenders, other than financial institutions, without NFA's prior approval. The action also prohibited JDN Capital and Nicholas from disbursing or transferring any funds from any accounts in the name of JDN Capital or Nicholas or from any other investments operated or controlled by JDN Capital or Nicholas, without NFA's prior approval. Finally, the action prohibited JDN Capital and Nicholas from placing any trades except to liquidate positions. This action was taken to protect customers, the derivatives industry and other NFA Members due to JDN Capital and Nicholas's failure to cooperate with NFA.