The National Futures Association has taken emergency enforcement action against Innovative Capital Management, a commodity pool operator and commodity trading adviser based in Brooklyn,

The National Futures Association has taken emergency enforcement action against Innovative Capital Management, a commodity pool operator and commodity trading adviser based in Brooklyn, and its principal, Yehuda Belsky.

Effective immediately, the Member Responsibility Action is deemed necessary to protect customers because Innovative and Belsky have provided NFA with false and misleading information, specifically fictitious statements regarding accounts controlled by Innovative.

The MRA suspends Innovative and Belsky from NFA membership and associate membership, respectively. The MRA also prohibits Innovative and Belsky from acting in any manner that requires registration under the Commodity Exchange Act.

In addition, the MRA prohibits Innovative and Belsky from soliciting or accepting any customer or pool participant's funds or placing trades on behalf of any of its customers or pools except to liquidate existing positions. Furthermore, the MRA prohibits Innovative and Belsky from distributing, disbursing or transferring any funds of customers or pools without prior NFA approval.

The MRA will remain in effect until Innovative and Belsky have demonstrated that they are in complete compliance with all NFA requirements. Innovative and Belsky may request a hearing before NFA's hearing committee.