National Futures Association (NFA) has ordered 50.ai Investments LLC, a former NFA Member commodity pool operator and Forex firm located in Princeton, N.J., not to reapply for membership or act as a principal of an NFA Member at any time in the future.
The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by 50.ai Investments.
In its Complaint, the BCC alleged that 50.ai Investments used misleading promotional material and communications and failed to uphold high standards of commercial honor and just and equitable principles of trade in connection with a commodity pool that the firm operated.
In particular, the firm used promotional materials that presented a distorted and misleading view of the likelihood of customers earning “dramatic profits” by investing with 50.ai Investments.
Several presentations showcased a possible 100% annual return on investment. Others promised 4% return monthly and of 50% annually.
E-mail communications misrepresented the amount of money the 50.ai Fund had under management.
The Complaint also alleged that 50.ai Investments failed to supervise the firm’s operations and its employee.
