The National Futures Association (NFA) has taken emergency enforcement action against New York commodity trading advisor BKT Capital Management and its principal, Basil Fayadh.
NFA has taken the Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) to protect customers because it says BKT and Fayadh have deliberately misled it and failed to cooperate with it throughout its investigation and attempted examination of the firm.
During the course of an unannounced audit, NFA says Fayadh provided misleading information regarding the existence of forex accounts and his affiliation with another related entity, BK Trading Inc. Fayadh also attempted to conceal information contained in bank statements, NFA says. Eventually, Fayadh refused to cooperate any further with NFA's investigation.
BKT and Fayadh are suspended from NFA membership effective immediately. In addition, they are prohibited from disbursing or transferring any customer funds.