Nadex bans member from trading as he fails to disclose felony plea agreement

Maria Nikolova

Dwayne Hans’ membership has been revoked and he is banned from trading on Nadex in any capacity.

North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has banned one of its members over breach of certain rules, including Rule 3.3 concerning Member Obligations.

Dwayne Hans became a Nadex Member in July 2014. In October 2017, Nadex received an alert from its third party background service, indicating that Dwayne Hans had plead guilty to wire fraud and computer intrusion, involving a scheme where between April and July 2016, he misrepresented himself as a an authorized representative of a US financial institution in order to redirect funds to his personal account, and inappropriately accessed a government website, also for the purpose of redirecting funds to his personal account. Based on its investigation Compliance found the alert was a positive match to the Nadex member of the same name.

According to Nadex Rule 3.3, all Members have an obligation to notify Nadex of a felony conviction or plea agreement that occurs while the individual is a Member, as well as any other changes in material information provided in the individual’s application. Members also have an obligation under the same Rule to cooperate with Nadex’s requests for information in any investigation.

Compliance determined that Hans violated Rule 3.3, subsections (a) and (d)(ii) and (iv) when he failed to the Exchange of his felony plea agreement, and when he failed to respond to Compliance’s inquiries regarding the incident to which it was alerted. As a result of his violations, Dwayne Hans’ membership has been revoked and he is banned from trading on Nadex in any capacity

In July this year, the Exchange revoked the membership of Rodney Bowman and Phil Shaheen for violations of the same rule (3.3).

Phil Shaheen failed to disclose that he had pled guilty to two counts of wire fraud, and that he had taken part in a fraudulent fund-raising scheme for charities. Additionally, Shaheen had failed to inform the Exchange that he had been convicted of operating a telemarketing scam, which defrauded investors out of $7 million.

Rodney Douglas Bowman did not disclose that he had been barred from association with any NASD member firm in any capacity. Bowman had actually been the subject of two NASD regulatory actions; the first involving allegations of securities fraud and manipulation in which a temporary bar, fines and restitution were assessed, and the second, in which Bowman failed to comply with requests for information and documentation in connection with a routine examination of a NASD member firm.

Read this next

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

Industry News

SEC charges $410+ million Ponzi scheme with pre-IPO shares

We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.

Industry News

FNZ taps data analytics GIST to address ESG ratings bias

The allocation of capital is critical to driving the change required to transition to net-zero and building a more sustainable economy and society.

<