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August 10, 2001
NFA bars Maryland futures firm and its principal owner
August 10, Chicago - National Futures Association suspended Peter James Scott (NFA ID #307333) and Bay Harbor Trading Company (NFA ID #307332) from NFA membership until further notice for allegedly defrauding customers and converting customers' money. The Member Responsibility Action (MRA) was taken on August 6, 2001. Bay Harbor is an introducing broker Member of NFA located in Forest Hill, Maryland. Scott is the sole principal and associated person of the firm.
The MRA also states that over the past three years, Scott allegedly converted money to his personal use that had been invested by approximately six hundred individuals in the Rothlin & Windsor Future Fund. Scott also allegedly provided false account statements to investors which inflated the performance of the fund and the value of investors' investments.
NFA's action prohibits Scott and Bay Harbor from acting in any manner which requires registration under the Commodity Exchange Act. They are also ordered to refrain from soliciting or accepting any funds and from placing trades in any accounts that they own or control or which are held in their names, or in the names of R&W Capital Management Inc. or Rothlin & Windsor Future Fund, except for liquidation of existing positions. Scott and Bay Harbor are also prohibited from disbursing any funds from any trading accounts which they own or control or which are held in their names, or in the names of R&W Capital Management or Rothlin & Windsor Future Fund, including but not limited to trading accounts at Alaron Trading Corporation and Man Financial, Inc., with-out prior approval from NFA. Scott is required to provide copies of the MRA to all individuals and entities from whom Scott, R&W Capital Management, Rothlin & Windsor Future Fund, and/or Bay Harbor received monies for the represented purpose of investing in R&W Capital Management and/or the Rothlin & Windsor Future Fund.
The MRA became effective on August 6 and will remain in effect until Scott and Bay Harbor have demonstrated to the satisfaction of NFA that they are in complete compliance with all NFA requirements. NFA is a congressionally authorized self-regulatory organization for the U.S. futures industry.
In a related action, the Commodity Futures Trading Commission (CFTC) filed a seven-count civil injunctive action on August 6 in the United States District Court for the Northern District of Maryland against Scott and R&W Capital Management. In accordance with the CFTC's request the Honorable Benson E. Legg entered a restraining order freezing the assets and preserving the books and records of Scott and R&W Capital Management.