Key Takeaways
- • The National Futures Association (NFA) filed a formal Complaint on December 22, 2025, against Forex Wizard Inc. and Mitsuaki Kataoka, alleging violations of NFA Requirements including failure to cooperate with investigations and misuse of promotional materials.
- • Forex Wizard, registered as a CFTC commodity trading advisor (CTA) since April 2005 and based in Nagano, Japan, allegedly operated an undisclosed forex pool, misrepresented NFA regulatory oversight, and failed to honor customer withdrawal requests from at least four investors.
- • The firm has reported to NFA since 2006 that it manages no customer accounts and is inactive, yet evidence suggests it accepted pooled customer funds in violation of regulatory requirements and made misleading claims about NFA's level of oversight.
- • Kataoka, the sole associated person (AP) and principal of Forex Wizard since 2005, is jointly liable for violations committed on behalf of the firm, including alleged delays in processing withdrawal requests and failure to provide required documentation such as complete client lists and banking records.
- • A Default Decision was issued on March 5, 2026, after Forex Wizard and Kataoka failed to file an Answer to the Complaint; potential penalties include censure, fines up to $500,000 per violation, and suspension or revocation of registration.
Summary
The NFA initiated disciplinary action against Forex Wizard Inc. and Mitsuaki Kataoka via a 16-page Complaint filed on December 22, 2025. The case, numbered 25BCC00012, centers on allegations that the Japan-based firm operated an undisclosed forex pool while misrepresenting its regulatory status and failing to honor investor withdrawal requests.
Forex Wizard has maintained active NFA membership as a CFTC-registered commodity trading advisor since April 2005, with Kataoka serving as its sole associated person and principal since the same year. However, the firm has consistently reported to NFA during examinations in 2009 and 2011—and continues to report—that it manages no customer accounts and is not active as a CTA. NFA's public BASIC database similarly classifies Forex Wizard as an "Inactive Member" with no ongoing commodity interest business operations. This dormant status contradicts evidence that the firm accepted and pooled customer funds from multiple investors.
The core violations alleged by NFA include failure to cooperate with regulatory investigations, violations of fair dealing principles, and use of misleading promotional materials that mischaracterized NFA's oversight authority. According to the complaint, at least four individuals contacted NFA regarding Forex Wizard and Kataoka's failure to honor withdrawal requests. Additionally, the firm allegedly failed to provide required documentation including complete client lists, banking records, and explanations for financial transactions—material omissions that prevented NFA from conducting adequate supervision.
Kataoka bears direct liability for these violations as the firm's principal and sole associated person. Under NFA Requirements, both individual and firm-level violations carry enforcement consequences. After Forex Wizard and Kataoka failed to file a response to the Complaint, the NFA's Business Conduct Committee issued a Default Decision on March 5, 2026. Potential sanctions include censure, monetary fines up to $500,000 per violation, and suspension or revocation of CFTC registration and NFA membership.
Forex Wizard has maintained active NFA membership as a CFTC-registered commodity trading advisor since April 2005, with Kataoka serving as its sole associated person and principal since the same year. However, the firm has consistently reported to NFA during examinations in 2009 and 2011—and continues to report—that it manages no customer accounts and is not active as a CTA. NFA's public BASIC database similarly classifies Forex Wizard as an "Inactive Member" with no ongoing commodity interest business operations. This dormant status contradicts evidence that the firm accepted and pooled customer funds from multiple investors.
The core violations alleged by NFA include failure to cooperate with regulatory investigations, violations of fair dealing principles, and use of misleading promotional materials that mischaracterized NFA's oversight authority. According to the complaint, at least four individuals contacted NFA regarding Forex Wizard and Kataoka's failure to honor withdrawal requests. Additionally, the firm allegedly failed to provide required documentation including complete client lists, banking records, and explanations for financial transactions—material omissions that prevented NFA from conducting adequate supervision.
Kataoka bears direct liability for these violations as the firm's principal and sole associated person. Under NFA Requirements, both individual and firm-level violations carry enforcement consequences. After Forex Wizard and Kataoka failed to file a response to the Complaint, the NFA's Business Conduct Committee issued a Default Decision on March 5, 2026. Potential sanctions include censure, monetary fines up to $500,000 per violation, and suspension or revocation of CFTC registration and NFA membership.
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