Joshua David Nicholas banned from NFA for eight years
According to the complaint, Mr. Nicholas and his firm misused a portion of a $300,000 loan from a married couple of customers to fund futures and other trading in his personal account at FCM A.
Joshua David Nicholas has been ordered not to reapply for NFA membership for eight years along with his former trading advisor JDN Capital LLC, the latter banned forever.
The NFA based the decision on a complaint issued by its Business Conduct Committee and a settlement offer submitted by JDN Capital and Nicholas.
Neither admitted nor denied the allegations, JDN Capital and Mr. Nicholas have been found to have failed to cooperate promptly and fully with NFA, failed to observe high standards of commercial honor and just and equitable principles of trade, and provided false and misleading information to NFA during the investigation.
JDN Capital and Nicholas were suspended from NFA membership in September 2020 and prohibited from soliciting or accepting any funds from customers or investors for any managed accounts or from lenders without NFA’s prior approval.
They were also prohibited from placing any trades except to liquidate positions as a measure to protect customers, the derivatives industry, and other NFA Members due to JDN Capital and Nicholas’s failure to cooperate with NFA.
Mr. Nicholas, JDN Capital’s former sole principal and associated person, can still seek NFA membership following the eight-year period, on the condition of paying a $125,000 fine.
According to the complaint, Mr. Nicholas and his firm misused a portion of a $300,000 loan from a married couple of customers to fund futures and other trading in his personal account at FCM A.
He also misled the couple by saying they could obtain a return of the loan principal at any time, and falsified activity statements.
