Without seeing the Master file, it's tough to say whether there's a problem or not.
Typically, what you need is a FILEDEF, pointing to the .ftm file. If it was created by FOCUS, (i.e. ON TABLE HOLD), then the data is usually in 'internal format', so each record is NOT terminated by a C/R L/F. If that's the case, the FILEDEF should specify the LRECL (how many byte to read per record) and have a RECFM (record format) of F. That way, Focus will read the correct number of bytes, and NOT look for a C/R L/F terminator. Ther LRECL can be determined by adding the lengths of all the ACTUAL values in the Master File.