Portfolio Managers, Inc., an introducing broker registered with the Commodity Futures Trading Commission and a member of the National Futures Association, and Amanda Murphy, the firm’s principal, agreed to settle charges brought by NFA that the firm engaged in misleading, deceptive and high-pressure sales techniques through associated persons in its Los Angeles branch office, in violation of NFA rules. Christopher Hogan, Thomas Heneghan and Andrew Zhukov, the relevant LA-based APs, were also named in NFA’s charges. However, as the three LA-based defendants did not answer NFA’s complaint, an NFA business conduct committee concluded they were deemed to have admitted all of NFA’s legal conclusions of wrongdoing. As a result, the BCC permanently barred Mr. Hogan and Mr. Heneghan from any association with an NFA member, but barred Mr. Zhukov for only three years, saying his conduct was less egregious. NFA filed its complaint against the defendants after its examination of PMI’s LA branch office found that, between October 2012 and August 2015, 66 of 68 customers lost money trading options through PMI, totaling approximately US $1.2 million, including over US $660,000 in commissions. NFA also said that Ms. Murphy received multiple “extremely serious customer complaints” against Mr. Heneghan alleging that he had stolen customer funds. However, she never disclosed the complaints to NFA even when she was aware that NFA was actively investigating him, said NFA.