NFA has taken an emergency enforcement action against JDN Capital, LLC, an NFA Member commodity trading advisor located in Stuart, Fla., and its sole principal and associated person Joshua David Nicholas.
This action was taken to protect customers, the derivatives industry and other NFA Members due to JDN Capital and Nicholas’ failure to cooperate with NFA. Due to their failure to produce requested documents and information, NFA, among other things, is unable to determine what JDN Capital and Nicholas did with loan proceeds received, including whether Nicholas misappropriated the money to fund his personal trading account. NFA is also unable to determine whether JDN Capital and Nicholas entered into other loans and, if so, the loan amounts and what JDN Capital and Nicholas did with the proceeds.
Effective immediately, JDN Capital and Nicholas are suspended from NFA membership and are prohibited from soliciting or accepting any funds from customers or investors for any managed accounts or from lenders, other than financial institutions, without NFA’s prior approval. JDN Capital and Nicholas are further prohibited from disbursing or transferring any funds from any accounts that are in the name of JDN Capital or Nicholas or from any other investments operated or controlled by JDN Capital or Nicholas, without NFA’s prior approval. JDN Capital and Nicholas are also prohibited from placing any trades except to liquidate positions.
This action will remain in effect until JDN Capital and Nicholas demonstrate to NFA’s satisfaction that they are in complete compliance with all NFA requirements.
JDN Capital and Nicholas may request a hearing before NFA’s Hearing Committee.
The complete text of the emergency action is available on NFA’s website.