CFTC takes action against Long Leaf Trading Group

Maria Nikolova

Long Leaf’s customers lost approximately $6.1 million trading due to the firm’s recommendations.

The United States Commodity Futures Trading Commission (CFTC) has taken action against Long Leaf Trading Group, Inc, its principals, Timothy M. Evans and James A. Donelson, as well as some of the firm’s employees and agents.

The CFTC filed its complaint with the Illinois Northern District Court on June 26, 2020. The document, seen by FinanceFeeds, alleges that, from at least June 2015 through December 2019 , Long Leaf Trading Group, Inc. at the direction of its principals Evans and Donelson, and through its agents and employees, including Jeremy S. Ruth and Andrew D. Nelson, engaged in a scheme to defraud customers in connection with options on futures contracts traded on designated contract markets in violation of the Commodity Exchange Act and accompanying Commission Regulations.

The defendants are alleged to have knowingly made numerous false and misleading statements to retail customers about the success of Long Leaf’s “Time Means Money” (“TMM”) options trading program. The defendants touted the success of the TMM program, claiming that it resulted in profits for customers. In reality, however, virtually all of Long Leaf’s customers lost money trading pursuant to the program.

The defendants knowingly or recklessly failed to disclose to, or deliberately withheld from, customers and prospective customers the material fact that substantially all customers lost money trading under the program.

During the relevant period, Long Leaf’s more than four hundred customers lost approximately $6.1 million trading pursuant to Long Leaf’s recommendations. These recommendations were designed primarily to generate commissions for Long Leaf. The firm made more than $4.4 million in commissions from its trade recommendations. These commissions accounted for more than 70% of customer losses.

The CFTC argues that, unless restrained and enjoined by the Court, the defendants are likely to continue to engage in the acts and practices alleged in the complaint or in similar acts and practices.

The Commission brings this action to enjoin the defendants’ unlawful acts and practices and to compel compliance with the Act and Regulations. In addition, the CFTC seeks civil monetary penalties and remedial ancillary relief, including, but not limited to, trading and registration bans, restitution, disgorgement, rescission, pre- and post-judgment interest, and such other relief as the Court may deem necessary and appropriate.

Read this next

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”


Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”

Digital Assets

Hidden Road adds OKX’s Nitro Spreads into prime brokerage

“Hidden Road continually seeks to increase market access and capital efficiency through expanded prime brokerage offerings. Integrating OKX’s Nitro Spreads product builds upon this philosophy by extending our counterparties’ ability to execute risk-managed arbitrage strategies.”


Dev Release 31: BlockDAG’s SHA-3 Upgrades Propel Crypto Mining Innovation as Miner Sales Approach 5800 Units

Learn about BlockDAG’s 31st Development Release, which includes advanced SHA-3 updates and a significant increase in miner sales, driving advancements.


BlockDAG Dominates 2024 Crypto Trends: Surpasses $28M in Presales Amid Strategic Partnerships

Explore BlockDAG, Shiba Inu, and Kaspa Killer’s rise in 2024’s crypto market, focusing on BlockDAG’s $28M presales, strategic partnerships, and innovative technology.