Wednesday, April 27, 2011

NFA bars Clash Financial for greater than 20% commission / equity ratio

NFA's analysis of trades in Clash customer accounts identified commission to
equity ratios that were consistently higher than 20%. Owens generated more than
$91,500 in commissions on invested equity of approximately $314,000 between
July 1 , 2009 and March 31 , 2010. In 2009 alone, Clash customers lost more than
$243,000 while paying almost $50,000 in commissions. Approximately 95o/o of
Clash customers lost money during that year. More than 80% of the trades tested
by NFA had to achieve positive returns of greater than 30% simply to overcome
commissions and fees. In fact, break even points required to cover commissions
and fees reached as high as 81o/o,86% and even 977o.

NFA permanently bars Georgia firm, Clash Financial LLC

April 1, Chicago - National Futures Association (NFA) has permanently barred from NFA membership Clash Financial LLC (Clash Financial), an Introducing Broker located in Lawrenceville, Georgia. Phil A. Owens, sole principal and associated person of Clash Financial, is also barred from NFA membership and principal status for a period of six years and barred from associate membership for a period of three years. In the event that he reapplies for NFA membership after the expiration of the bar he must also pay a fine of $15,000. The Decision, issued by an NFA Hearing Panel, is based upon an NFA Complaint filed in October 2010 and a settlement offer submitted by Clash Financial and Owens.
The Complaint charged that Owens and Clash Financial recommended trades that maximized commissions without regard for the best interests of a customer and made deceptive sales solicitations.