Futures Merchant MBF Sued For Violating Account Regs

Law360, New York (March 13, 2012, 7:48 PM EDT) -- The U.S. Commodity Futures Trading Commission hit MBF Clearing Corp. with a lawsuit Tuesday, claiming the New York-based futures commission merchant violated federal regulations by failing to segregate customer funds and properly supervise its employees.

MBF deposited customer funds into a bank account without designating it as a customer segregation account, in violation of the Commodity Exchange Act, the commission alleges. The company also failed to obtain a written acknowledgment stating the bank was informed that the funds belonged to its customers as required by federal...
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