Fort Lauderdale, FL – Sulaiman “Sal” Husain and his son, Mansur “Manny” Husain, will pay a combined $5 million to settle charges of undercapitalization and making false statements, the U.S. Commodity Futures Trading Commission (CFTC) announced on September 2, 2008.
The CFTC’s complaint, originally filed in the U.S. District Court for the Southern District of Florida on August 28, 2007, alleged that Nations Investments, LLC, an FCM based in Fort Lauderdale, operated below the minimum net capital requirements since at least July 2006. An amended complaint filed in February 2008 added Sal and Manny Husain as defendants.
The court found that Nations, along with Sal and Manny Husain, violated the Commodity Exchange Act (CEA) and CFTC regulations by submitting false and misleading statements to the National Futures Association (NFA). Specifically, they failed to report a $1 million liability in mandatory monthly financial reports.
As part of the settlement, the Husains will pay $3.5 million in restitution and $1.5 million in monetary penalties. They are also permanently barred from engaging in any activities related to commodity trading. Additionally, relief defendants Sammy Joe Goldman, Rosalind Goldman, and Lalita Husain, who benefitted from the scheme, are required to disgorge $400,000 in ill-gotten gains.
“This case is a warning that the CFTC and courts regard unscrupulous money movements, funding schemes, and the falsehoods that facilitate them as serious violations of U.S. commodities laws that we will pursue aggressively,” said CFTC Acting Director of Enforcement Stephen J. Obie.
The CFTC investigation was conducted in coordination with the NFA.
Source: CFTC.gov
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