For Release: September 2, 2008
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) announced today that Nations Investments, LLC (Nations), a futures commission merchant (FCM) based in Fort Lauderdale, Florida, and its principals, Sulaiman “Sal” Husain and his son, Mansur “Manny” Husain, will pay $3.5 million in restitution and $1.5 million in monetary penalties to settle undercapitalization and false statements charges, brought by the agency.
The defendants are also permanently enjoined from any activities that are directly or indirectly related to trading in commodities. The settlement requires relief defendants, Nations’ principal Sammy Joe Goldman, his wife Rosalind Goldman, and Lalita Husain, the spouse of Sal Husain, who were unjustly enriched by the defendants’ conduct, to pay $400,000 in disgorgement of their ill-gotten gains.
“This case is a warning that the CFTC and courts regard unscrupulous money movements, funding schemes, and the falsehoods that facilitate them as serious violations of U.S. commodities laws that we will pursue aggressively,” said CFTC Acting Director of Enforcement Stephen J. Obie.
The original complaint was filed against Nations in the U.S. District Court for the Southern District of Florida on August 28, 2007 (see CFTC Press Release 5380-07, September 5, 2007). An amended complaint was filed in February, 2008, adding as defendants Sal Husain, who was a relief defendant in the original complaint, and Manny Husain (see CFTC News Release, 5454-08, February 12, 2008).
The court’s consent order finds that, since at least July 2006, Nations was operating below the minimum net capital requirements for FCMs in violation of the Commodity Exchange Act (CEA) and CFTC regulations. The order also finds that Nations, Sal Husain, and Manny Hussain (the defendants) violated the CEA and CFTC regulations by filing false and misleading statements with the National Futures Association (NFA). Specifically, the defendants failed to disclose a $1 million liability in monthly financial reports known as 1-FR-FCMs that FCMs are required to file with the NFA.
The CFTC coordinated its investigation with, and was assisted by, the NFA.
The following CFTC Division of Enforcement staff members are responsible for this matter: John Dunfee, Luke Marsh, Eugene Smith, Ken Koh, Mary Kaminski, Paul Hayeck, and Joan Manley.
Last Updated: September 2, 2008