GFS Forex , one of the latest brokers to withdraw from the US market, has settled a Complaint that was launched against it by the NFA in December 2009. The Complaint charged GFS Forex and its Associated Principals Yun Ho and Matthew Censullo with alleged multiple violations of NFA's rules such as:
0396633 CENSULLO, MATTHEW PAUL
• C.R.2-36(b)(1) - CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS
0316995 GFS FOREX & FUTURES INC
• C.R.2-36(e) - FOREX DEALER MEMBERS SUPERVISION OF EMPLOYEES
• C.R.2-36(b)(1) - CHEAT, DEFRAUD, DECEIVE FOREX CUSTOMERS
• C.R.2-40 - BULK ASSIGNMENT OR LIQUIDATION OF FOREX POSITIONS; CESSATION OF CUSTOMER BUSINESS
0370391 HO, YUN LUN
• C.R.2-36(e) - FOREX DEALER MEMBERS SUPERVISION OF EMPLOYEES
Amongst other things GFS Forex was charged with soliciting its clients to bulk transfer their accounts to UK's City Credit Capital (a company in which GFS's President Alfred Tang is also a majority owner, so learned NFA independently) despite the NFA telling it that this wasn't possible as it is not a US broker.
A few days later the following notice appeared on GFS Forex's website: "We, of course, welcome you to transfer your GFS account to City Credit Capital (UK) Ltd. However, the choice of a new home for your Forex Trading account is exclusively yours and nothing in this Notice should be understood as a recommendation for City Credit Capital (UK) Ltd."
You've got to admit it's nothing short of hilarious though NFA wasn't very amused calling this notice 'deficient' and directed GFS to immediately remove it from its website.
There are quite a few more amusing (more or less) examples of GFS's alleged violations and you are welcomed to read it all in details here. In any case NFA agreed to settle the case again GFS, which still remains a registered FCM, and erase one count in a Complaint against Ho.
