Nadex bans member from trading as he fails to disclose felony plea agreement
Dwayne Hans’ membership has been revoked and he is banned from trading on Nadex in any capacity.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 As a result of his violations, Dwayne Hans’ membership has been revoked and he is banned from trading on Nadex in any capacity
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.