In what is yet another example of the tangled ties of the commoditiy trading world and its self-regulatory system, Alaron Trading Corp. is suing Chris Hehmeyer, chairman of the National Futures Association (NFA), over a failed 2008 deal.
Alaron Trading, which sold its customer accounts to PFGBest in 2009 but still operates a back-office software consulting business, alleges that Hehmeyer misrepresented an offer to expand a business relationship with Alaron and later interfered with Alaron’s efforts to sell customer accounts to PFGBest.
Hehmeyer, who previously led futures commission merchant (FCM) Penson GHCO and now rungs HTG Capital Partners, is accused of using inside information he attained through his position at NFA in considering business decisions between Penson and Alaron.
In his then role as vice chairman of the NFA, “he was privy to information regarding any poposed action by the NFA against Alaron” and used it in considering Penson’s relationship with Alaron. Likewise, Alaron alledges that Hehmeyer’s knowledge of “the NFA’s investigation into Alaron’s capital requirements and the possibility that the NFA would prevent Alaron from holding customer funds” affected his dealings with the firm.
The complaint, filed in Cook County Court, seeks $4 million in damages from Hehmeyer.