Category Archives: Level III Management News

NFA Expels Member Firm Level III Management, LLC

The National Futures Association recently announced its termination of Metairie, Louisiana commodity pool operator and commodity trading advisor Level III Management LLC from NFA membership.  NFA has also ordered Level III Management’s principal and associated person Bruce Gwyn to withdraw from membership for a period of at least seven years.

According to NFA, 24 investors contributed approximately $1.7 million to Level III Trading Partners LP, a commodity pool managed by Level III Management.  During NFA’s unannounced examination of Level III Management in June 2012, NFA discovered that the Level III Pool had only $200,000 in assets.  NFA determined that Gwyn had siphoned more than $240,000 from the pool’s accounts to pay personal expenses.

In addition, NFA determined that Level III Management had caused the Level III Pool to invest in penny stocks in companies with connections to Gwyn.  NFA also determined that Level III Management and Gwyn had provided misleading information to pool investors.

NFA concluded that Level III Management had failed to  “observe high standards of commercial honor and just and equitable principles of trade and ailing to cooperate with NFA” in violation of NFA’s general conduct rule.

Blau & Malmfeldt invites Level III Pool customers to contact us at 312-443-1600 for a complimentary case evaluation.  Blau & Malmfeldt is a law firm that represents investors across the United States in securities, commodity futures, partnership and shareholder rights disputes.