February 14, Chicago - National Futures Association (NFA) has ordered Level III Management LLC (L3 Management), a commodity pool operator and commodity trading advisor member of NFA located in Metairie, Louisiana, and former registered introducing broker NFA member Level III Trading LLC (L3 Trading) to permanently withdraw from NFA membership. NFA also has ordered the firms' former principal, Bruce A. Gwyn (Gwyn), to withdraw from NFA membership for a period of seven years. The Decision, issued by NFA's Hearing Committee (Committee), is based on a Complaint filed on June 12, 2013, and a settlement offer submitted by L3 Management, L3 Trading and Gwyn.
The Complaint charged L3 Management, L3 Trading and Gwyn with willfully providing misleading information to the participants in Level III Trading Partners LP (L3 Pool), a pool that L3 Management operated. The Complaint also charged L3 Management and L3 Trading with failure to observe high standards of commercial honor and just and equitable principles of trade and failing to cooperate with NFA.
In addition, the Complaint charged L3 Management with failure to file annual financial statements and pool quarterly reports with NFA for the L3 Pool; failing to furnish participants in the L3 Pool with a financial statement; and failing to provide customers of L3 Management with a current disclosure document approved by NFA that adequately discussed the true nature of the L3 Pool's investments.
The terms of the Decision also state that if, after the expiration of his seven-year membership bar, Gwyn applies for NFA membership, or reapplies for NFA associate membership or seeks to become a principal of an NFA member, he must pay a fine of $50,000.