NFA takes emergency enforcement action against Dallas firm, Profitstars Intl and its principal Ulysis Starling

National Futures Association (NFA) announced that it has taken an emergency enforcement action against Profitstars Intl Corp. (PSI) and its associated person and listed principal, Ulysis Starling. PSI is a Commodity Trading Advisor and Commodity Pool Operator located in Dallas, Texas.

NFA has taken this action because it believes that PSI is doing business with an unregulated Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term counterparty. Although PSI listed a forex commodity pool, Profitstars, with NFA, it appears that Profitstars is not a pool and is in fact a fiction designed to allow an unregulated entity to act as a counterparty to retail forex accounts and another unregistered firm to act as solicitors for those accounts.

In addition, Starling and PSI have been unable to produce adequate books and records regarding their forex business to demonstrate that PSI is in complete Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with NFA Requirements. Furthermore, PSI has not provided their customers with a disclosure document approved by NFA. Finally, although PSI filed an exemption notice with NFA for its CTA business based on its contention that all of its customers were Qualified Eligible Participants, neither PSI nor Starling has been able to substantiate these claims.

The Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) prohibits PSI and Starling from soliciting or accepting any funds from customers, investors, pools or other investment vehicles or placing any trades on the behalf of customers, pools or investors. Additionally, PSI and Starling are prohibited from disbursing or transferring any funds of customers, investors or pools without prior NFA approval. PSI also is required to provide an NFA approved disclosure document to its customers and investors.

The MRA and ARA will remain in effect until such time as PSI and Starling can demonstrate to the satisfaction of NFA that they are in complete compliance with all NFA Requirements. PSI and Starling may request a prompt hearing on this matter before NFA's Hearing Committee.

The complete text of the MRA/ARA is available on NFA's website (www.nfa.futures.org).

The following Compliance staff members are responsible for this case: Diane Spreadbury (312-781-1573) and Brendan Litwin (312-781-1206).

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.