According to a public press release from the U.S. Commodity Futures Trading Commission (CFTC) they “[filed and simultaneously settled] charges against Velocity Futures, LLC, a registered futures commission merchant, for failing to supervise diligently the handling of its customer accounts.”
The alleged improprieties occurred between 2003 and 2007; the CFTC claims that Velocity Futures “failed to develop and implement an adequate system to monitor the trading of customer accounts by third parties and protect customers against potential account churning.” The CFTC also expressed concern that Velocity failed to do a proper background check on a business associate, foreign introducing broker Norbert Grupe, “even though Velocity was aware of his potential criminal background.” It turns out that Norbert Grupe “was, in fact, the convicted felon and a fugitive from the Florida Department of Corrections.”
The sanctions imposes on Velocity Futures for their supervisory failures are a “$180,000 civil monetary penalty and cease and desist order on Velocity and requires that the firm undertake new supervisory procedures.”
If you have concerns about investments that you made with Velocity Futures, LLC and would like to speak to a securities attorney about the potential recovery of your investment losses please call our 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.