September 20, 2013
CFTC Orders Foremost Trading LLC, an Introducing Broker, to Pay $400,000 for Supervision Violations
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Foremost Trading LLC (Foremost), a registered Introducing Broker based in Geneva, Illinois, for failing to supervise diligently the handling of certain trading accounts by its officers, employees, and agents. The CFTC Order requires Foremost to pay a $400,000 civil monetary penalty and cease and desist from violating CFTC regulation 166.3, as charged.
Specifically, the CFTC Order finds that Foremost failed to supervise diligently its officers’, employees’, and agents’ handling of accounts held by clients that were referred to Foremost from three unregistered entities that sold futures trading systems (the Systems Providers). Foremost’s officers, employees, and agents ignored warning signs that the Systems Providers were procuring their clients through fraudulent means and engaging in fraudulent business practices, the Order finds.
Foremost’s personnel received complaints and information from clients about the apparently fraudulent misrepresentations made by the Systems Providers and the unscrupulous business practices in which the Systems Providers were engaged, but failed to fully investigate all these claims or inform clients or prospective clients about these claims, the Order finds. Foremost continued to open accounts for clients referred by the Systems Providers, and additionally, on numerous occasions, Foremost vouched for the Systems Providers’ track records in conversations and correspondence with clients, according to the Order.
CFTC Division of Enforcement staff members responsible for this case are Peter L. Riggs, Thomas L. Simek, Jo Mettenburg, Stephen B. Turley, Jeff Le Riche, Rick Glaser,and Richard Wagner.
Last Updated: September 20, 2013