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Concorde Trading Group - Brushes with the NFA

Regulatory Actions: 4
Arbitrations: 2
CFTC Reparation Cases: 108

CONCORDE TRADING GROUP INC
6499 POWERLINE ROAD #108
FT LAUDERDALE, FL 33309

It should be no suprise that this introducing broker caught our attention. The number of complaints and actions brought against them is overwhelming. For instance, they have 3 regulatory actions from the NFA and 1 from the CFTC. One case is still pending, while the others amounted in fines of $145,000 as well as stricter regulations being imposed. Then we move on to arbitrations, which aren't bad at all for as many customers as they have had. They had just 2 arbitrations and won both of them. And finally we move on to CFTC reparations...108! That number is very high, however, reparations claims are not enforcement actions. They are attempts by customers to resolve futures-related disputes.

Here is an excerpt from an NFA complaint on August 18, 1993:

the complaint alleges that from January 1989 to June 1992, Concorde traded over 2,800 customer accounts and that over 90 percent of these customers lost all or substantially all of their money, while Concorde collected $12.8 million in commissions. The complaint also alleged that in the first five months of 1993, Concorde had 1,126 actively traded customer accounts, and at the end of May 1993, those accounts had an aggregate net loss of about $5.5 million and had paid total commissions of approximately $2.6 MILLION, WHICH ACCOUNTED FOR 48 PERCENT OF THE NET LOSSES.

Sounds bad...right? Well, it probably is. It may be a bit naive of the NFA when they state that over 90% of their clients lost substantially all their money. My experience and most of the studies I've seen had told me that 90% losers is fairly normal for commodity traders. If they had 2,800 customers and made $12.8 million in commissions from them, that would equate to about $4,500 in commissions per customer. That seems very high. I have to believe there were some pretty aggressive brokers in this office.

It's hard to believe this company is still in business. On the NFA's website, it shows their status as "Approved NFA Member" and "Registered Introducing Broker". Well, it will be interesting to see how long that lasts. Their 4th regulatory action in "pending". The NFA named the firm and 12 others in the complaint. Most of them have been accused of "CHEATING,FRAUD and DECEIVING CUSTOMERS". We'll keep you posted on the outcome.

Looking a little deeper, we have to look at the history of the principles of Concorde. The first of the two is Dennis Richard Gee

CHILMARK COMMODITIES CORP
Reg. Actions: 4
Arbs: 12
CFTC Rep: 97

COMTEK TRADING GROUP INC
0 on all

DIVERSIFIED TRADING SYSTEMS INC
Reg Actions: 5
Arbs: 12
CFTC Rep Cases: 48

OXFORD INVESTMENTS
Reg Actions: 1
Arbs: 11
CFTC Reps: 22

FIRST SIERRA CORPORATION
Reg Actions: 3
Arbs: 6
CFTC Reps: 40

FSG INTERNATIONAL INCORPORATED
Reg Actions: 3
Arbs: 3
CFTC Reps: 59

INTERNATIONAL COMMODITY SERVICES INC
Reg Actions: 1
Arbs: 0
CFTC Reps: 1

INTERNATIONAL FUTURES STRATEGISTS INC
Reg Actions: 4
Arbs: 3
CFTC Reps: 47

INTERNATIONAL PRECIOUS METALS CORP
Reg Actions: 1
Arbs: 0
CFTC Reps: 147

KNIGHTSBRIDGE TRADING GROUP INCORPORATED
Reg Actions: 0
Arbs: 1
CFTC Reps: 0

MULTIVEST OPTIONS INC
Reg Actions: 3
Arbs: 2
CFTC Reps: 120

UNIVERSAL COMMODITY CORPORATION
Reg Actions: 1
Arbs: 4
CFTC Reps: 31

WINNER GROUP INC THE
Reg Actions: 2
Arbs: 1
CFTC Reps: 22

We can't determine how involved he was in all these companies and whether some of these companies have just changed their names. One thing is for sure - this guy has been around some firms that the regulators know intimately.

The other listed principle is, Arthur John Schlecht. Here is the list of firms he's been registered with:

CONCORDE CAPITAL ASSET MANAGEMENT INC
0 on all

FINANCIAL SERVICES GROUP
Reg Actions: 1
Arbs: 0
CFTC Reps: 5

FIRST COMMODITY CORP OF BOSTON
Reg Actions: 6
Arbs: 0
CFTC Reps: 743

FSG INTERNATIONAL INCORPORATED
Reg Actions: 3
Arbs: 3
CFTC Reps: 59

GERALD COMMODITY SERVICES INC
Reg Actions: 15
Arbs: 1
CFTC Reps: 75

GRANDVIEW HOLDING CORP
Reg Actions: 4
Arbs: 3
CFTC Reps: 10

CHAMBERLAIN COMMODITIES
Reg Actions: 1
Arbs: 0
CFTC Reps: 1

Well, I guess that's enough said for him also.

Concorde is still in business despite their brushes with the NFA and CFTC. They are listed as a Registered Introducing Broker and an NFA member. They also have a website that is active.






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