RI House Candidate Barred from Financial Trading for 5 Years: UPDATED
Tuesday, July 19, 2016
East Providence Assistant Mayor and candidate for the Rhode Island House of Representatives, Helder Cunha, had been been barred from trading in the futures industry by the National Futures Association.
NFA is the industry-wide, regulatory organization for the U.S. derivatives industry.
SLIDES: READ THE ENFORCEMENT ACTION BELOW
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAn executive with the leading national financial regulatory agency told GoLocalProv.com on Monday that actions against Cunha were "very serious."
“So the charges are serious enough to put someone out of business. These are very serious charges,” said Karen Wuertz, SVP, Strategy and Communications at NFA.
Cunha defended his actions, "In terms of the NFA complaint, I was a one man operation. I took care of client assets, and after I worked in NY I moved back home and I started Cambridge Capital Group, when this all came about. I didn't have a compliance officer about what to put on and not to put on materials, and I missed some disclosures about what to put on with the NFA when they asked to look at all my files, which I gave them access to. I had zero complaints. The only complaint was from the NFA."
But, according to the complain, Cunha and his company faced forty counts by the regulatory agency and many were from clients or directly involved cleints, including presenting false information.
"It was about my disclosure -- I said thanks for telling me, I don't have a compliance officer. It was $3400 just to renew the licenses. The NFA is funded by members. So I didn't renew my license, I trade my own capital...it's my own personal money," said Cunha.
Cunha is running for House District 64 — the seat was previously held Helio Mello.
After multiple complaints against Cunha and his company Cambridge Capital Group, the NFA disciplinary council “ordered Cunha not to reapply for NFA membership status or act a principal of an NFA Member for a period of five years from the date of [the] decision" in 2013.
In addition, the NFA found “Cunha ineligible for five years to serve on a disciplinary committee, arbitration panel, oversight panel or governing board of any self-regulatory organization, as that term is defined in CFTC Regulation 1.63,” according to enforcement action documents secured by GoLocal.
According to the NFA, “Investor confidence is crucial to the success of the derivatives markets, and the best way to gain investor confidence is to ensure that the highest levels of integrity are demanded of all market participants and intermediaries."
"A Few Bad Apples"
"Most of our members, they comply with the rules. It's just a few bad apples that we spend our time and resources trying to ID,” said Wuertz on Monday. “If they are barred from membership, they can't conduct any business in the derivatives market. Membership is mandatory to conduct business with customers. if you're not a NFA member, you can't conduct business.”
Rhode Island Secretary of State Ralph Mollis revoked Cambridge Capital Group’s certificate of corporation in May of 2015.
Cunha was last elected in East Providence in 2014 when he defeated Brian Casto by a margin of 1,142 vote (57.8%) to 812 votes (41.1%).
Cunha's Record
Earlier in June, WJAR reported on a conflict between Cunha and a East Providence driver that has led to a State Police investigation. On Monday WPRI reported that Helder was tied to David Prescott (AKA David Weeks) who has been sentenced to federal prison.
According to the Boston office of the U.S. Attorney, “David Prescott, 45, formerly of Boston, was sentenced by U.S. District Judge Allison D. Burroughs to 18 months in prison, three years of supervised release and restitution of $505,619. In November 2016, Prescott pleaded guilty to four counts of wire fraud. Prescott, who previously went by the name of David Weeks, was indicted on those charges in February 2015.”
Prescott worked for Cunha’s now disbarred company.
""I wasn’t involved in Prescott - I was the victim the same way his other people were. His real name was David Weeks -- when they told me what he was doing, I was shocked. He raised money, looked for managers, and invest it with those investors. Luckily the clients that came to me I only had access too," said Cunha.
Prescott was the owner and President of Cambridge Currency Partners, LLC (CCP), which was purportedly engaged in the business of buying and selling foreign currency.
Related Slideshow: Cambridge and Cunha Decision by NFA
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