National Futures Association (NFA) recently announced that it has taken an emergency enforcement action against System Capital, LLC (System Capital) and Joshua W. Wallace. System Capital is a Commodity Trading Advisor (CTA) located in Lake Oswego, Oregon and Wallace is the firm’s sole principal and associated person.
NFA issued the Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) to protect the customers of System Capital because System Capital and Wallace solicited customers with false and misleading information and misled and lied to NFA in its investigation of the firm. The investigation was prompted by documents received by NFA from another NFA Member which contradicted the information NFA had on file for System Capital. During the investigation, Wallace admitted to preparing and distributing a fabricated report that purported to show that System Capital was audited by a nationally recognized public accounting firm and to providing information to potential investors that showed significant profitable performance which had been falsely represented as actual.
System Capital and Wallace are prohibited from soliciting or accepting any funds from customers or investors, soliciting investments for any commodity pools or other investment vehicles, or placing any trades on behalf of customers, commodity pools, or investors except liquidation or risk reducing trades. Additionally, System Capital and Wallace are prohibited from disbursing or transferring any funds of customers, investors, or commodity pools over which they exercise control, or participants in any such commodity pools, without prior approval from NFA.
This information which is publicly available on NFA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with System Capital , LLC and/or Joshua W. Wallace, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.