A Canadian-based commodities trader affiliated with embattled Minneapolis money manager Trevor Cook has agreed to give up his trading rights for three years in response to a complaint that accused him of letting Cook -- who is not a registered trader -- take control of an offshore currency investment pool.

The trader, David Krywenky of Toronto, has run Kingz Capital Management Corp., a registered commodities trading adviser and commodities pool operator in Barbados, for two years. The National Futures Association (NFA), a self-regulatory body that oversees the futures markets, filed a complaint against Krywenky and Kingz Capital in September accusing them of failing to uphold ethical standards, cheating customers, and failure to supervise business activities properly.

The NFA's complaint cited stories in the Star Tribune about Cook and his associates, indicating that they had made false statements about a currency investment strategy.

Since then, Cook has been accused by U.S. regulators of running a $190 million Ponzi scheme that defrauded about 1,200 investors. The NFA's complaint said that Kingz Capital's records indicate that as of last June, the fund had $284 million. But two sources investigating the alleged fraud say it appears that those records are bogus.

Without admitting wrongdoing, Krywenky settled the NFA complaints Tuesday by agreeing that Kingz Capital will permanently withdraw from its membership in the association, and he will personally agree to a three-year bar. For Krywenky to qualify for membership in the NFA after that, he would need to first pay a $25,000 fine.

Dan Browning • 612-673-4493