Chicago, IL – New World Holdings, LLC (NWH) has been slapped with a $50,000 penalty and a permanent injunction by the U.S. Commodity Futures Trading Commission (CFTC) for failing to maintain proper business records, according to a federal court order issued January 8, 2014. The case originated with a complaint filed on July 22, 2010.
U.S. District Court Judge Robert W. Gettleman of the Northern District of Illinois entered the Consent Order for Permanent Injunction, prohibiting NWH from violating the Commodity Exchange Act and CFTC Regulations. The CFTC alleges that beginning around March 10, 2006, NWH introduced an account under the name of Idylic Solutions Pty Ltd. to a Futures Commission Merchant.
Investigators found NWH also introduced several other accounts linked to the same individuals associated with Idylic Solutions, including Unifund, Ltd., 888 Management, Inc., Secured Bond, Ltd., and Sagacity, Ltd. – collectively referred to as the “Pooled Accounts.” These accounts collectively amassed over $21 million in deposits during the period in question.
The core of the violation centers around NWH’s failure to retain essential business records related to the Idylic account and the Pooled Accounts. Specifically, the company did not preserve emails and other documents pertaining to its dealings in commodity futures, options, and cash commodities for the legally mandated five-year period. NWH is registered with the CFTC as both an Introducing Broker and a Commodity Trading Advisor.
The CFTC acknowledged the assistance provided by the Australian Securities and Investments Commission in the investigation. The case was led by CFTC staff members Eugene Smith, Elizabeth N. Pendleton, Michael Amakor, Timothy J. Mulreany, and Paul Hayeck. The order was issued January 14, 2014, from Washington, D.C.
Source: CFTC.gov
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