United States National Futures Association (NFA) has since declared it has barred former commodity pool operator Quants Capital Management, Inc. and its former principal and affiliated person Gokhan Kisacikoglu from membership for one year. NFA can be barring permanently Quants and Kisacikoglu from acting as a principal of an NFA Member.
The article NFA bars Quants Capital Management from membership for a single year appeared initially on FinanceFeeds.
In the end, the Complaint charges that Quants and Kisacikoglu used a tear sheet that failed to clearly identify operation results as hypothetical and contained a disclaimer which made it uncertain whether the returns are actual or hypothetical.
Monthly account statements weren’t provided to Quants’ shareholders on time.
Also, the Complaint alleges that the respondents, even within their disclosure record and promotional material, comprised optimistic performance information associated with MedSecurities accounts. Kisacikoglu represented to NFA the rewarding operation was originated from trading hints that Quants supplied to seven account holders at MedSecurities Investments. However, the respondents were not able to prove that they exercised discretion over these reports. The single outcomes that NFA could substantiate revealed considerable losses.
While an NFA member (from May 2010 to January 2018) Quants worked two pools that participated in gambling — Quants Strategy Equity Fund and Quants Fund.
In determining the penalty, the NFA Panel took into consideration that this is actually the second BCC criticism against the respondents. In September 2013, Quants and Kisacikoglu have been also ordered to pay a fine for failing to comply with recordkeeping requirements.
The Hearing Panel found that Quants and Kisacikoglu utilized deceptive and misleading promotional stuff that included unsubstantiated positive performance information and introduced hypothetical information as though it were actual performance. The Hearing Panel also decided that Quants failed to prepare and distribute mandatory monthly account statements.
NFA’s complaint charges which Quants violated NFA Compliance Rules by failing to prepare and distribute pool account statements. The Complaint also charges that Quants with Kisacikoglu violated NFA Compliance Rules by preparing and distributing a deceptive disclosure document and using fraudulent and misleading promotional stuff.