Brokerage Firm Ran $4.4M Options Fraud Scheme, CFTC Says

Law360 (June 29, 2020, 10:44 PM EDT) — The Commodity Futures Trading Commission sued a Chicago-based brokerage firm and four executives and associates in Illinois federal court Monday, accusing the group of defrauding customers out of $4.4 million through a scheme involving options on futures transactions.

The CFTC said that Long Leaf Trading Group Inc., its principals James A. Donelson and Timothy M. Evans, and former associates Jeremy S. Ruth and Andrew D. Nelson misled prospective customers about the success of the firm’s “Time Means Money” options trading program, causing 400 people to lose more than $6.1 million, of which the defendants collected more than 70%.

“The CFTC is…