The embattled and suspended McElhannon Group and Philip Mack Worley have once again drawn a National Futures Association (NFA) order, according to an NFA statement.
Back in March, the NFA suspended McElhannon Group and Philip Mack Worley, on the heels of a series of detailed investigations into the firm’s operations and managed account results. The suspension was levied as a result of a lack of cooperation with the regulator during an investigation of the firm. At the time, the US watchdog issued a formal notice to the Texas-based firm prohibiting it from dealing in regulated activities and disbursing its existing client funds.
McElhannon’s promotional material claimed a rate of return of 457% over a thirteen-year period
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Fast forward three months to June, as McElhannon Group has once again found itself under the watchful eye of the NFA. Despite the earlier suspension, the group and Philip Mack Worley NFA drew an official Complaint, charging the McElhannon Group and Worley after a failure to comply with the previous suspension order.
In addition to the continued offering of services despite the March order, the NFA complaint has also warned of cheating and promoting fraudulent material and promotions relegated to the foreign exchange (FX). Additionally, the two entitles have yet to comply with the NFA, which was the genesis for the initial suspension.
More specifically, McElhannon’s promotional material claimed a rate of return of 457% over a thirteen-year period for its FX managed account program. Because Worley and McElhannon failed to cooperate with NFA throughout its attempted investigation of the firm, the NFA was unable to determine whether the firm was in compliance with NFA requirements. During the watchdog’s prior investigation, it requested from Phillip Worley, by phone and email, to make himself available, however Worley repeatedly said he was unavailable.