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Screenshot of a breaking news alert e-mail from Q2 2017
The U.S. Commodity Futures Trading Commission (CFTC) announced that Judge Andrew P. Gordon of the U.S. District Court for the District of Nevada entered an Order of default judgment against My Global Leverage, LLC (MGL), which did business in Las Vegas, Nevada, and its owner and managing member Toney Blondo Eggleston, who resided in Las Vegas and Newport Coast, California, for engaging in illegal, off-exchange precious metals transactions.
The Court’s Order requires MGL and Eggleston, jointly and severally, to pay $692,488 in restitution and a $773,040 civil monetary penalty. The Order also imposes permanent trading, solicitation and registration bans against MGL and Eggleston, and a permanent injunction that prohibits them from engaging in illegal, off-exchange precious metals transactions.
The Court’s Order stems from a CFTC Complaint filed on April 23, 2015, that charged MGL and Eggleston with engaging in illegal, off-exchange transactions in precious metals with retail customers on a leveraged, margined, or financed basis. The Complaint further charged, and the Order finds, that Eggleston was MGL’s controlling person and is therefore liable for MGL’s violations of the Commodity Exchange Act.
In the Order, the Court further finds that, between July 2011 and November 2012, MGL, by and through its employees including Eggleston, solicited retail customers by telephone to engage in financed precious metals transactions which constitute off-exchange retail commodity transactions. The Court also finds that in connection with the unlawful precious metals transactions, MGL received $786,085 from approximately 12 customers. MGL returned $93,597 to its customers such that customers incurred $692,488 in losses. MGL received commissions and fees totaling $257,680 for the retail off-exchange precious metals transactions.
The Order also finds that precious metals were never delivered to any customers with respect to the financed metals transactions made on behalf of MGL’s customers. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, leveraged, margined, or financed transactions such as those conducted by MGL, are illegal off-exchange transactions unless they result in actual delivery of metal within 28 days.
The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.