The NFA made the announcement in a press release.
“NFA has ordered Golden Meadow Investments LLC (Golden Meadow), an NFA Member commodity pool operator and commodity trading advisor located in Jersey City, N.J., to both withdraw from and never again apply for NFA membership or principal status with any NFA Member.
“The Decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA’s Business Conduct Committee, and a settlement offer submitted by Golden Meadow. The Complaint alleged that Golden Meadow failed to produce books and records for one of Golden Meadow’s principals, Global Time Investment, which Golden Meadow had represented was the majority owner. NFA had requested these records to determine, among other things, who controlled Global Time Investment, if it held any customer funds, and if all of its funds were from legitimate sources.”
The NFA complaint explained that Golden Meadow failed to register Kui Sun as an associated person of the firm. The complaint stated that at one-point, Global Time had a 91% state in Golden Meadow.
As a result, the complaint stated, “During the exam (of Golden Meadow), NFA learned that Sun and Global Time Investment, as well as another entity owned by Sun, had trading accounts at an FCM (Futures Commission Merchant) into which over $8.5 million was deposited between 2016 and 2018. According to Sun, most of these $8.5 million deposited into these trading accounts were proceeds from loans that Global Time and the other entity received from friends of Sun.”
As a result, the complaint noted, the NFA asked for records for Global Time and other entities involved. According to the complaint, that’s when Golden Meadow began to stall and refused to turn over those records.
The complaint continued, “In an apparent attempt to avoid producing these records, Golden Meadow delisted both Global Time Investments and Money Monkey Investments as principals in January 2019. Moreover, Sun then claimed that Global Time Investment never owned 91% of Golden Meadow Investment even though it was Sun who first told NFA that Global Time had a 91% ownership interest in Golden Meadow.”
The complaint stated that NFA asked once again in March 2019 for records related to Global Time Investments.
“Hu (Yuliang Hu of Golden Meadow) responded to this email by indicating that Golden Meadow would finally comply with NFA’s request. However, a short time later Sun emailed NFA indicating that Golden Meadow would not produce the records.”
This repeated failure, according to NFA’s decision, led to the action to bar the firm from NFA membership.
NFA is a self-regulatory organization that oversees the futures industry.
An email to Golden Meadow investments was left unreturned.