Federal Court Orders Blue Sky Capital Management Corp. to Pay $140,000 for Making False Statements to the National Futures Association
The CFTC has announced that it obtained a federal court order requiring Blue Sky Capital Management Corp. ("Blue Sky") and its principal, Gregory M. Schneider, jointly to pay a $140,000 civil monetary penalty for making false statements to representatives of the NFA.
The complaint charged Blue Sky and Schneider with making false, fictitious, or fraudulent statements to the NFA and willfully concealing material facts from the NFA, in connection with 2008 audit of Blue Sky, at a time when Blue Sky was a registered CPO and CTA.
The order found that Blue Sky and Schneider:
- misrepresented to the NFA that Blue Sky began managing customer accounts in 2008, managed 10 customer accounts with an aggregate equity of approximately $20,000, and had received no customer complaints;
- failed to disclose that Blue Sky managed approximately 80 customer accounts in 2007, with an aggregate equity of approximately $1.2 million; and
- failed to disclose that a Blue Sky customer complained about the unauthorized trading of his account before, and even during, the NFA audit.
The order also imposes permanent trading and registration bans against the defendants and permanently prohibits them from further violations of the Commodity Exchange Act, as charged.
View Order here(links externally to CFTC website).See also: CFTC Press Release.