NFA has just ordered Kingz Capital Management Corporation (KCM) to permanently withdraw from NFA membership and permanently barred its Principal David Michael Stephen Krywenky.
It appears that KCM and Krywenky were involved in the the high profile Twin Cities / Crown Forex S.A. alleged scam scandal. Apparently Twin Cities' Trevor Cook managed investor funds in a Liquidity pool named Oxford Global Partners and which was the sole investor in KCM. These funds were supposedly invested and traded in Crown Forex and subsequently unaccounted for as Crown Forex went bankrupt.
Three days ago, on January 25th 2010, Trevor Cook was jailed.
On September 30, 2009, NFA issued a Complaint charging KCM and Krywenky with failure to uphold high ethical standards and failure to supervise. The Complaint also charged KCM with cheating, defrauding or deceiving another person or attempting to do so.
On January 26, 2010, KCM was ordered to withdraw its NFA membership and never apply for NFA membership or principal status with any NFA Member. Krywenky was ordered to withdraw his NFA membership and principal status with any NFA Member and not apply for NFA associate membership for three years. Krywenky was also ordered not to apply for NFA membership or principal status with any NFA Member or act in a manner that would require his disclosure as a principal of any NFA Member at any time in the future. Should Krywenky apply for NFA associate membership with any NFA Member following the expiration of the three-year period, he was ordered to pay a $25,000 fine, due and payable in full on or before the date of any such application.
Here is the full Complaint by the NFA:
