NFA Sanctions VBI Company and Its Ex-Principal with Membership Ban

The National Futures Association (NFA) has permanently barred VBI Company, a former NFA-regulated introducing broker based in Sioux Falls, S.D., from ever reapplying for NFA membership or seeking principal status with any NFA Member. The regulator also prohibited Peter Mark Vanden Berge, VBI’s former associated person and principal, from applying for NFA membership, associate membership, or principal status for six months.

The decision, issued by an NFA Hearing Panel, stems from a complaint filed by the Business Conduct Committee (BCC) and a settlement offer submitted by VBI and Vanden Berge, in which they neither admitted nor denied the allegations. The BCC charged that VBI failed to maintain required pre-trade communications and, along with Vanden Berge, failed to properly supervise the firm. The NFA Hearing Panel determined that Vanden Berge committed the violation alleged against him.

Back in September 2022, the BCC filed a complaint against VBI and Peter Mark Vanden Ber. The case involved violations of NFA rules relating to recordkeeping, providing false information to the NFA or its agents, and failure to properly supervise employees. After review, the BCC and Hearing Committee held them jointly and severally liable, imposing a $135,000 fine.

In July, the NFA ordered Traders Edge Inc., a registered Introducing Broker (IB) with the Commodity Futures Trading Commission (CFTC), to withdraw from NFA membership and barred the firm from reapplying.