South Florida Arbitration & Litigation Lawyer Blog
FOREX Fraud, Misrepresentation and Negligent Supervision FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
November, 2011:
Nathan Eugene Calhoun (CRD #716257, Registered Representative, Little Rock, Arkansas) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Calhoun consented to the described sanction and to the entry of findings that FINRA received investors’ complaints alleging that Calhoun had solicited them to invest in a foreign currency exchange trading (FOREX) program a foreign entity operated; with his assistance, the investors invested a total of $150,000 in the FOREX program. Ultimately, the entity’s FOREX scheme was the subject of federal actions by both the SEC and the Commodity Futures Trading Commission (CFTC). The findings stated that Calhoun solicited the investors to invest in the entity while he was employed as a registered representative with his member firm; Calhoun’s participation in the private securities transactions was outside the regular course or scope of his employment with his firm. The findings also stated that Calhoun failed to provide prior written notice of his role in the transactions to his firm and did not receive the firm’s written approval or acknowledgment concerning his participation in the private securities transactions. The findings also included that Calhoun failed to appear for a FINRA on-the-record interview. (FINRA Case #2011026223401).