NFA Fines California Firm and Former Principal and Associated Person $750,000

The NFA has levied a $500,000 fine against Kent Charles Roberts II ("Roberts"), a former associated person ("AP") and principal of First Quadrant LP ("First Quadrant"), an NFA Member CTA and CPO located in Pasadena, California. NFA has also levied a $250,000 fine against First Quadrant. The Decision, issued by the NFA's Business Conduct Committee, is based on a Complaint filed on March 21, 2013, and a settlement offer submitted by First Quadrant and Roberts.

The Complaint alleged that Roberts violated just and equitable principles of trade under NFA Compliance Rule 2-4 by allowing individuals to engage in activities that required them to be registered as APs of First Quadrant when such individuals were not registered as APs of the firm. Roberts was also alleged to have arranged for an introducing broker ("IB") Member of NFA to compensate those unregistered individuals for their assistance and to have failed to disclose those activities to First Quadrant's management.

The Complaint further alleged that First Quadrant violated its obligation to adequately supervise Roberts underNFA Compliance Rule 2-9(a).