LAWSUITS NEWS & LEGAL INFORMATION
Unauthorized Trading
Chicago, IL: (Apr-21-08) The Commodity Futures Trading Commission brought a lawsuit against Chicago-based Alaron Trading Corp., alleging that the company failed to properly supervise brokers dealing with customer accounts. The suit stated that between 2004 and 2006, Alaron failed to notice unauthorized trading for at least 25 clients. The federal agency claimed that the company allowed an unregistered adviser to manage accounts and permitted a broker, Stephen Randall Moore, to trade on behalf of customers without their authorization.
As part of a settlement agreement reached by both sides, sources stated that the Chicago-based firm agreed to pay almost $300,000 to resolve allegations. Under the terms of the settlement agreement Alaron will pay a civil monetary penalty of $180,000 and restitution of $119,295 to customers, in addition to improving its system overseeing employees and customer accounts. [CHICAGO TRIBUNE: ALARON TRADING AGREES TO SETTLEMENT WITH CFTC]
Published on Apr-23-08
As part of a settlement agreement reached by both sides, sources stated that the Chicago-based firm agreed to pay almost $300,000 to resolve allegations. Under the terms of the settlement agreement Alaron will pay a civil monetary penalty of $180,000 and restitution of $119,295 to customers, in addition to improving its system overseeing employees and customer accounts. [
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