The National Futures Association (NFA) has taken emergency action against California-based Light Tower Investments (LTI), an NFA member commodity pool operator (CPO) and commodity trading advisor (CTA), and Klaus Weyers, a principle and associated person of LTI.
The body has taken action against member responsibility action (MRA) and associate responsibility action (ARA) to protect LTI’s customers as LTI and Weyers failed to cooperate during the NFA’s attempted investigation into the firm.
The NFA alleges that LTI was operating a commodity pool – LTI Capital – but LTI and Weyers did not list the pool with the NFA or submit a Pool Disclosure Document to NFA for review and acceptance, or file an exemption from Commodity Futures Trading Commission (CFTC) registration. The NFA also believes that LTI and Weyers had been managing several accounts as a CTA since June 2011, despite the fact that they have only recently disclosed to the NFA that LTI was active as a CTA.
The NFA states that it contacted Weyers on 8 May 2013 and informed him that an examination of the firm would commence on 13 May. While initially cooperating, Weyers and LTI have failed to produce required documents for the examination. On 17 May, Weyers sent an email to NFA stating that he would no longer cooperate with NFA's investigation.
Both LTI and Weyers, and any person acting on their behalf, are prohibited from soliciting or accepting any funds from customers, pool participants or investors, as well as disbursing or transferring funds without prior approval from the NFA.
The MRA/ARA will remain in effect until such time as LTI and Weyers have demonstrated to the satisfaction of NFA that they are in complete compliance with all NFA Requirements, says the body.