NFA permanently bars Dafex Global from membership
The United States National Futures Association (NFA) has permanently barred Dafex Global Ltd., a former NFA Member commodity pool operator and commodity trading advisor located in Malaysia from membership and from acting as a principal of an NFA Member.
The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC. The Complaint targets Dafex and Yury Epstein, an associated person (AP) of Dafex, and approved as a NFA Associate since May 20, 2020.
The Complaint alleges that Dafex, through its agents and employees, engaged in a deceitful course of conduct in order to obtain NFA membership and CFTC registration. This conduct contradicts the high standards of commercial honor and just and equitable principles of trade expected of NFA Members.
Dafex falsely listed Yury Epstein as a principal of the firm in May, even though he did not qualify or agree to be listed as a principal of the firm. In August, an individual acting on Dafex’s behalf again attempted to list Epstein as a principal, without his consent, to prevent the firm’s membership withdrawal from becoming effective.
The firm also knowingly sponsored Epstein as its AP, even though it knew that Epstein would not be soliciting orders or customers, or engaging in any other activities that would require his registration as an AP of the firm, thereby making him an AP in name only (i.e., a nominal AP).
NFA’s evidence indicates Dafex became a CPO Member not because the firm’s operations required it to do so, but rather to give the impression that Dafex is a U.S. regulated entity. Firm representatives also admitted that Dafex has no clients and that its business plans have been delayed by the coronavirus.
As further alleged, individuals acting on Dafex’s behalf attempted to mislead NFA by, inter alia, filing the certification with NFA that incorrectly represented Dafex had completed the required background check on Epstein, and wrongly listing in ORS that Dafex’s main office is located in Colorado.
By reason of the foregoing acts and omissions, Dafex was charged with violations of NFA Compliance Rules 2-2(f) and 2-4.