North American Derivatives Exchange (Nadex), a part of IG Group Holdings plc (LON:IGG), has taken disciplinary action against Rodney Blackford.

The sanctions follow an investigation undertaken by the Nadex Compliance Department. The investigation into Blackford was launched after the Department received information regarding his regulatory history. Specifically, the Compliance Department was notified that the Securities and Exchange Commission (SEC) filed a complaint against Blackford and his affiliate, Blackford Energy Company on March 11, 1994.

The Complaint alleged that Blackford offered and sold unregistered securities related to a Montana oil and gas drilling venture. The Complaint also alleged that Blackford made false and misleading statements about his success in locating oil, as well as the rate of return to investors. On November 29, 1994, pursuant to an offer of settlement, the U.S. District Court of Utah entered an Order permanently enjoining Blackford and his company, Blackford Energy Company, from further violations of federal securities laws.

The Order also required the payment of funds to creditors, the distribution of funds to investors of Blackford Energy Company, and the assignment to the investors of working interests in wells drilled by Blackford Energy Company in Montana.

In addition, a subsequent Utah state court action for the same conduct resulted in Blackford being convicted of securities fraud on January 24, 2000 and ordered to pay restitution.

During his tenure as a Nadex Member, Blackford failed to timely inform Nadex that he was a party to the aforementioned regulatory matter and subsequent fine, penalties and settlement related to securities fraud on his initial Membership application or thereafter. In addition, Blackford failed to comply with this investigation when he did not respond to the Compliance Department’s request for information regarding the allegations set forth in the subject alert.

Blackford violated Nadex Rules 3.3(d)(ii) and (iv) when he failed to timely apprise Nadex of the aforementioned regulatory actions and penalties imposed therein. In addition, the Compliance Department concluded that Blackford violated Rule 3.3(a) and Member Acknowledgements and Authorizations, Section (h) of the Nadex Membership Agreement when he failed to cooperate with the Compliance Department’s inquiry regarding these matters.

Finally, Blackford violated Rule 5.19(k) when he failed to disclose information to Nadex on his account application regarding his regulatory disciplinary history.

Rodney Blackford’s Nadex Membership has been revoked, his account terminated, and he has been permanently banned from trading on Nadex Markets, either directly for his own account or through an intermediary, or as an authorized trader on behalf of any other account.

The effective date of the disciplinary notice is March 1, 2021.