Francesc Riverola,
NFA takes emergency enforcement action against Texas commodity trading advisors and their presidents
June 4, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against M25 Investments, Inc. (M25), M37 Investments LLC (M37), David P. Fearis, III, president of M25 and director of M37, and Ronald L. Larson, president of M37. Both firms are located in Waxahachie, Texas.
http://www.m25investments.com/
The Member Responsibility Action (MRA) is deemed necessary to protect the investing public and futures markets based on evidence that M25 and M37 may be operating a Ponzi scheme in which they obtained loans from unsophisticated persons and in return gave these persons unsecured promissory notes that M25 and M37 have promised to repay. However, through NFA’s investigation, it appears that M25 and M37, including Fearis and Larson, have funneled the borrowed funds to other entities controlled by principals of the firms and that there appears to be an approximate $3.7 million shortfall between what is owed on the notes and the combined assets of M25 and M37. In addition, M25, M37, Fearis and Larson continue to solicit loans, even though they have insufficient assets to repay the existing loans and have failed to disclose this to their existing and prospective lenders.
Effective immediately, M25, M37, Fearis and Larson are prohibited from soliciting or accepting funds from customers and any loans from lenders without prior NFA approval and are prohibited from placing any trades for themselves or customers. They are also prohibited from disbursing or transferring any accounts which are in the names of or controlled by either M25 or M37.
The MRA will remain in effect until M25 and M37 have demonstrated that they are in complete compliance with all NFA Requirements. M25 and M37 are entitled to a prompt hearing on this matter before NFA’s Hearing Committee.
The complete text of the MRA can be found on NFA’s website (www.nfa.futures.org).
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
View Case Summary
How did they do it? I have afriend who was in M25 and he had and his financial statement from the brokerage house,and it was in his name. But the NFA report says the monies in it were loans, a guess he signed something that pooled his money with the fund and gave them access to the account. PLEASE ANSWER
Dear Scot
I’m not aware of the details of that case. I just reported it.
For further details, you should contact the NFA
Hi Francesc. Against mine and other’s advice, my parents “invested” 10,000 USD with M37. I know that the NFA edicted that Larson and Fearis notify investors of their current condition, but what if they do not comply? Will the law do what they would not?
I would rather my parents find out through legal means rather than me telling them as I don’t want to embarrass them any more than they already will be. But I also don’t want them to invest any more than they already have. In that regard, I was wondering if there is a time limit on the edict and if there is recourse if Larson and Fearis don’t comply. Thank you for your time.