COURT ORDERS INTRODUCING BROKER TO PAY FINE FOR RECORD-KEEPING VIOLATIONS

FROM:  COMMODITY FUTURES TRADING COMMISSION 
Federal Court in Illinois Orders Chicago-based Introducing Broker New World Holdings, LLC to Pay $50,000 to Settle Record-Keeping Violation Action

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Order against Defendant New World Holdings, LLC (NWH) of Chicago, Illinois, requiring NWH to pay a $50,000 civil monetary penalty for destroying business records and failing to diligently supervise employees.

The Consent Order for Permanent Injunction, entered by U.S. District Court Judge Robert W. Gettleman of the Northern District of Illinois on January 8, 2014, also permanently prohibits NWH from violating the Commodity Exchange Act and CFTC Regulations, as charged in the Complaint filed against NWH and two other Defendants on July 22, 2010 (see CFTC Press Release 5861-10). NWH is registered with the CFTC as an Introducing Broker and Commodity Trading Advisor.

The Order finds that, beginning on or about March 10, 2006, NWH introduced an account in the name of Idylic Solutions Pty Ltd. (Idylic) to a Futures Commission Merchant. In addition to the Idylic account, NWH introduced a number of other accounts from the same individuals who opened the Idylic account, or associated with them, including but not limited to accounts in the name of Unifund, Ltd., 888 Management, Inc., Secured Bond, Ltd., and Sagacity, Ltd. (collectively referred to as the “Pooled Accounts”). Deposits into the Idylic account and the Pooled Accounts in the aggregate exceeded $21 million throughout the relevant period, according to the Order.

NWH failed to retain all of the business records related to the Idylic account and Pooled Accounts, relating to NWH’s business of dealing in commodity futures, commodity options, and cash commodities, including but not limited to emails that were prepared in the course of its business of dealing in commodity futures, and further failed to keep said records for a period of five years from the date thereof, according to the Order.

The CFTC appreciates the assistance of the Australian Securities and Investments Commission in this matter.

CFTC staff members responsible for this case are Eugene Smith, Elizabeth N. Pendleton, Michael Amakor, Timothy J. Mulreany, and Paul Hayeck.