The National Futures Association (NFA) has permanently barred Portfolio Managers, Inc. (PMI), an NFA Member introducing broker located in Streamwood, Ill., and PMI’s LA branch office associated persons (AP) Christopher M. Hogan and Thomas G. Heneghan from membership and from acting as principals of an NFA Member. In addition, NFA barred PMI’s sole principal Amanda L. Murphy from membership and from acting as a principal of an NFA Member for four years, and its LA branch office AP Andrey A. Zhukov for three years.
NFA alleged that between October 2012 and August 2015 all but two of the LA branch office’s 68 customers lost money, totaling about $1.2 million, and paid over $660,000 in commissions. A red flag to investors may be if your broker trades your account frequently resulting in a cumulatively large amount of commissions.
The Decisions are based on a Complaint authorized by NFA’s Business Conduct Committee (BCC) on December 21, 2015, and a settlement offer submitted by PMI and Murphy. An NFA Hearing Panel found that PMI, acting through the APs at its LA branch office, made misleading, deceptive and high-pressure sales solicitations, and willfully submitted false and misleading information to NFA. In addition, the Hearing Panel found that PMI and Murphy failed to supervise PMI’s operations and its APs’ sales practices. The BCC found that Heneghan and Zhukov made misleading and deceptive sales solicitations to customers and used high-pressure sales tactics. The BCC also found that Hogan provided NFA with materially false and misleading information, and failed to diligently supervise the operations and employees of PMI.
If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Law Offices of Place & Hanley, LLC to discuss your legal options. The Law Offices of Place & Hanley, LLC is dedicated to helping investors nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (866) 318-4725 for a complimentary initial consultation.