NFA: Marcus Brisco banned for life after commingling funds at Yas Castellum
The financial watchdog found Yas and Marcus Brisco failed to receive funds in the name of its commodity pool and commingled pool funds with the property of other persons.
Yas Castellum LLC, a Denver-based commodity pool operator, and its principal Marcus Brisco from membership have been permanently banned by the National Futures Association, the US regulator announced.
Marcus Brisco, former principal and associated person of Yas Castellum, will no longer be able to act as a principal of an NFA Member following failures to operate its commodity pool as a separate legal entity.
Failure to operate as a separate legal entity
The financial watchdog found Yas and Marcus Brisco failed to receive funds in the name of its commodity pool and commingled pool funds with the property of other persons.
Additionally, the regulator claims Marcus Brisco failed to uphold high standards of commercial honor and just and equitable principles of trade by, among other things, operating the commodity pool in a manner that showed no regard for safeguarding the money they solicited and accepted from the pool participants.
Both Yas and Brisco didn’t answer the complaint issued by NFA’s Business Conduct Committee (BCC). After failing to cooperate in NFA’s examination of Yas, both the entity and Brisco were banned from membership.
Argo banned for misleading clients on “commission rebates”
Last year, the NFA ordered former commodity pool operator Argo Wealth Management never to reapply for membership or act as a principal of an NFA Member. The firm’s associate Joel Vincent Newcomb was also banned for life, while associate Daniel Morris Miller was banned for three years.
The complaint alleged that Argo failed to disclose the impact of so-called “commission rebates” on the profit potential of pool participants, and the extent of fees and commissions that would be charged, and their significant impact on the pool.
The firm used deceptive and misleading promotional material and claimed a customer’s overall costs would be lower if the customer invested in the Argo pool, the NFA alleged. The case ended in a settlement in which Argo, Joel Vincent Newcomb, and Daniel Morris Miller neither admitted nor denied the allegations.
Mr. Miller may still reapply for NFA membership following the three-year ban if he pays a $100,000 fine, but he will be subject to certain restrictions for an additional two years if he is again granted NFA membership status.
