DECISION IN DISCIPLINARY CASES (X-Change Financial Access LLC et. al. (Peter Gordon Scheffler))

Case Documents:

Amended AnswerAmended ComplaintAmended DecisionAmended Notice Of IntentAmended Notice Of Member Responsibility ActionAnswerAppeals Committee DecisionCftc DecisionCftc OrderCircuit Court AppealComplaintDecisionFederal Court OrderFinal OrderInterim OrderNfa ReplyNoticeNotice And Order Lifting Member Responsibility ActionNotice And Order Lifting Suspension Of MembershipNotice And Order Of SuspensionNotice Of AppealNotice Of Associate Responsibility ActionNotice Of IntentNotice Of Member Responsibility ActionNotice Of Suspension Of MembershipNotice Of Termination Of AraNotice Of Termination Of Member Responsibility ActionOrderOrder Denying PetitionOrder Lifting ConditionsOrder Of DismissalPetition To StayResponse To Amended Notice Of IntentResponse To Notice Of IntentWithdrawal Of Notice Of Intent

Narrative Summary:

COMPLAINT:

On April 24, 2024, NFA's Business Conduct Committee (BCC) issued a Complaint against X-Change Financial Access LLC (XFA), Timothy F.... Hendricks (Hendricks), and Peter G. Scheffler (Scheffler). The Complaint charges XFA with failing to keep full, complete, and systematic records of all transactions relating to XFA's business of dealing in commodity interests and maintain all pre-trade communications; and allowing unregistered individuals to act as associated persons without being registered in such capacity and as NFA Associates. The Complaint also charges XFA, Hendricks and Scheffler with failing to supervise.

ANSWER TO COMPLAINT:

On June 28, 2024, Scheffler filed an Answer to the Complaint.

On June 28, 2024, XFA and Hendricks filed an Answer to the Complaint.

DECISION:

On September 23, 2024, NFA's Hearing Panel issued a Decision, pursuant to a settlement offer, ordering Scheffler not to apply for NFA membership, reapply for NFA associate membership or principal status with a Member, or act as a principal of a Member through December 31, 2024. The Hearing Panel also ordered Scheffler to pay a $150,000 fine, if he applies for NFA membership, associate membership or principal status after December 31, 2024, and restricted his supervisory activities from January 1, 2025 through March 31, 2025.Read More.

Rule Type:

• C.R.2-9(a) - SUPERVISION OF EMPLOYEES

Committee:

• Business Conduct Committee
• Hearing Committee

Action Type(s):

• GENERAL CONDUCT

Penalty/Event:

• MAY NOT SUPERVISE
• FINE (CONTINGENT) $150,000
• ORDERED NOT TO REAPPLY FOR NFA MEMBERSHIP
• ORDERED NOT TO REAPPLY FOR NFA ASSOC MEMBERSHIP
• ORDERED NOT TO ACT AS PRINCIPAL OF AN NFA MEMBER

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