The Chicago-based National Futures Association has accepted Magma Fund Advisors' settlement offer to withdraw membership and to never reapply.

The Chicago-based National Futures Association has accepted Magma Fund Advisors' settlement offer to withdraw membership and to never reapply.

Magma, a commodity pool operator, is located in George Town, Grand Cayman, with a US office in Atlanta.

Desmond M. Muthemba, Magma's principal, also agreed to withdraw from NFA associate membership for two years and not to apply for NFA membership or principal status with any NFA member for five years.

The decision, issued by the NFA's Business Conduct Committee, is based on a complaint filed in December 2008 and a settlement offer submitted by Magma and Muthemba that neither admitted nor denied the allegations made against them in the complaint.

The complaint charged that Magma provided false information to the association and failed to list a principal of the firm. The complaint also charged that Magma failed to uphold just and equitable principles of trade, that Magma and Muthemba used deceptive promotional material, and that they failed to supervise diligently the conduct of Magma's commodity futures business.