Futures Commission Merchant (FCM) Vision Financial Markets announced, in a letter dated June 12, that it had reached settlement with the National Futures Association over charges filed last September related to its supervision of commodity trading advisor Ace Investment Strategists owned by Yu-Dee Chang.
(NFA BARS VISION & Yu-Dee Chang)
According to the letter Vision agreed to accept the findings that it violated certain NFA rules, pay a $1.5 million fine and to withdraw its FCM registration once the business is “spun out” to a yet to be registered FCM named High Ridge Futures LLC. Vision will transfer its FCM business to the newly registered FCM under the control of Vision’s major owners Robert Boshnack and Howard Rothman under a wholly owned holding company. Richard Matteo was named High Ridge's CEO.
Vision also announced that prior to the settlement it had restored approximately $2,053,000 to the managed account customers of ACE. In a related complaint the NFA charged ACE with misappropriating approximately $2.1 million in customer funds.
The complaint against Vision charged Vision, its COO Steven Silver and AP Bruce Newman with three counts of violating NFA rules including failure to supervise, failure to keep adequate records and failure to observe high standard of commercial honor and just and equitable principles of trade.
The complaint pointed out that Vision “has had a long history of supervisory issues during its tenure as an NFA Member,” and notes that it has been the subject of four prior NFA Complaints – three of which charged the firm with failing to diligently supervise various aspects of the firm’s operations.
The respondents in the complaint faced expulsion, suspension for a specified period from NFA membership; bar or suspension for a specified period from association with an NFA Member; censure or reprimand or a monetary fine not to exceed $250,000 for each violation found.
Vision stated in the letter that it anticipates that the transition to the new FCM will take six months and that it expects the transfer of customer accounts to High Ridge to be seamless. The NFA had no comment at this time.