The National Futures Association (NFA) today announced two decisions against GMG Brokers LTD, an NFA Member introducing broker located in London, U.K., and two of the firm’s employees, Marco Saviozzi and Jason Terence Lyons.
The decisions resolves the charges brought against the respondents by NFA’s Business Conduct Committee. One Decision requires GMG to pay a $225,000 fine, with Saviozzi, a principal and associated person (AP) of GMG, sharing liability with the firm jointly and severally for $50,000.
The other Decision requires Lyons, an AP of GMG, to pay a $125,000 fine and to withdraw from NFA associate membership on or before May 1, 2023, and thereafter not apply for NFA membership, associate membership or principal status for 120 days.
The BCC Decisions are based on a Complaint issued by the Committee and settlement offers submitted by GMG, Saviozzi and Lyons, in which they neither admitted nor denied the Complaint’s allegations.
The Complaint alleged that GMG and Lyons violated NFA Compliance Rules 2-2(a) and 2-4 by engaging in deceptive conduct, failing to observe high standards of commercial honor and just and equitable principals of trade, and acting contrary to their customers’ best interests through Lyons’ misleading communications with GMG customers and in trading activities that placed GMG and his interests—as well as the interests of a “favored” GMG customer—ahead of other GMG customers to generate additional brokerage fees.
The Complaint also charged GMG and Saviozzi with failing to supervise, in violation of NFA Compliance Rule 2-9(a).
In its Decisions, the BCC found that GMG and Lyons violated NFA Compliance Rules 2-2(a) and 2-4; and that GMG and Saviozzi violated NFA Compliance Rule 2-9(a).
