NFA orders ODL Securities, Inc. and its principal to pay a fine of $165,000

NFA orders ODL Securities, Inc. and its principal to pay a fine of

$165,000

 

September 26, Chicago - National Futures Association (NFA) has ordered

ODL Securities, Inc.

<http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0330396>

(ODL) and its principal, Brian P. King

<http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0256271> , to

jointly pay a fine of $165,000. ODL is a Futures Commission Merchant and

Forex Dealer Member located in Chicago, Illinois. Raymond A. Dubuque

<http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0332396> , an

associated person of ODL, was also fined $3,000 and ordered to tape

record all conversations with existing or potential customers for a

period of one year. The Decision

<http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1348> ,

issued by an NFA Hearing Panel, is based on a Complaint

<http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1079>

filed in March 2007, and a settlement offer submitted by ODL, King and

Dubuque.

 

The Panel found that ODL and Dubuque made misleading and deceptive

statements in the solicitation of foreign currency (forex) customers. In

addition, the Panel found that ODL failed to take applicable

concentration charges on transactions with certain forex counterparties,

and failed to maintain adjusted net capital. The Panel also found that

ODL failed to implement enhanced supervisory procedures, maintain

adequate books and records, and file financial statements within a

timely manner. Finally, the Panel found that ODL and King failed to

adequately supervise ODL’s activities.

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