“NFA has permanently barred Systra LLC (Systra), an NFA Member commodity trading advisor located in Chicago, Ill., and its sole principal and associated person Robert H. Kopp from membership and from acting as a principal of an NFA Member , the announcement made in their recent press release.
“The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC. The BCC found that Systra and Kopp provided false information to NFA concerning Kopp’s trading activities on behalf of a pool managed by Systra. The BCC also found that Systra and Kopp failed to cooperate with NFA in its May 2019 examination of Systra by failing to produce documents requested by NFA and failing to make Kopp available for questioning by NFA.”
The complaint against Systra noted that the company is a repeat offender.
“Systra has been the subject of three examinations, including an initial applicant exam. The firm’s 2017 examination resulted in NFA issuing a Letter to the firm for deficiencies noted during the examination.”
The complaint further noted that this current investigation was triggered by an April complaint by a client who was unable to redeem their funds.
“In April 2019, NFA received a complaint from an individual who alleged he was unable to redeem his interest in the Golden Horn Opportunity Fund, which was managed by Systra Asset Management,” the complaint further noted. “This individual had invested $250,000 in the Golden Horn Fund in September 2014 and had made redemption in February 2015 and March 2016 which totaled $42,000 but had been unable to get back the remainder of his investment.”
Golden Horn Fund, the complaint noted, was run by a member of Systra.
The complaint continued, “Based on the foregoing information, NFA commenced and unannounced examination of Systra on May 3, 2019.”
The complaint also noted that Kopp provided misleading information about his and Systra’s involvement with Golden Horn Fund to NFA during this examination.
“NFA asked Kopp about the Golden Horn Fund. Kopp indicated that he provided advice but did not trade for the fund. NFA subsequently learned that Kopp’s representation was false and that he actively traded several accounts that the Golden Horn Fund maintained.”
NFA is the self regulatory organization which governs futures traders.
It is set up to be under the purview of the Commodities Futures Trading Commission (CFTC), which approves all its rules and regulations.
It does, however, initiate enforcement action on its own and has power to remove licenses as in this case without CFTC’s approval.