The U.S. Commodity Futures Trading Commission (CFTC) has fined NinjaTrader Clearing, LLC, which operates as NinjaTrader, Tradovate, and TransAct Futures, $750,000 for “inadequate oversight of accounts.”
An Illinois-based futures commission merchant was found to have fallen short in its emergency account handling policies, especially when dealing with a court order connected to fraud charges in a separate case.
The CFTC’s investigation revealed that NinjaTrader did not supervise its employees in dealing with accounts tied to Rajiv Patel. The latter and his company, Bluprint, solicited nearly $10 million from 16 investors for trading in securities but instead misappropriated the funds for personal use.
The CFTC claims that rather than trading on behalf of investors, Patel directed the funds into his personal bank accounts, using them to pay for mortgages, vehicles, and credit card bills. By late 2021, the investments were largely wiped out.
According to CFTC, NinjaTrader’s oversight failure meant that some accounts were not restricted as required, leading to more than $200,000 in losses. Along with the fine, NinjaTrader must pay $233,425 in restitution to victims.
“Specifically, in January 2022, NTC failed to diligently supervise its employees’ handling of accounts NTC held or managed under the name Rajiv Patel. NTC did not have adequate policies and procedures and did not adequately oversee its employees to ensure NTC implemented the SRO entered by the court in connection with the fraud perpetrated by Patel and his company, Bluprint LLC,” the statement reads.
The CFTC ordered NinjaTrader to improve its practices and to cease any further violations of regulations.
Launched in 2003, NinjaTrader provides a complete end-to-end platform serving manual and automated traders of futures, equities and forex markets. The platform offers dynamic analytic tools both natively and through its vast third-party partner ecosystem.
NinjaTrader officially operates as an introducing broker for several brokers and claims such acquisitions deliver savings to its clients through tight spreads and discount commissions. The platform is available at over 100 brokerages worldwide and is promoted through offering free charting, analytics, system development and trade simulation.
Additionally, users of NinjaTrader’s trading software have access to crypto brokerage service providers directly through a simple online registration process.
