Aaron B. Butler, Fraud, Alabama 2020

Muscle Shoals, AL – Aaron B. Butler, a former resident of Muscle Shoals, Alabama, has been permanently banned from trading commodities and registering with the CFTC after being found guilty of fraud, according to a U.S. District Court order issued June 17, 2020. Butler was also ordered to pay a combined $755,000 in restitution and civil penalties.

The charges stem from a complaint filed by the Commodity Futures Trading Commission (CFTC) on November 4, 2019, alleging fraudulent solicitation, misappropriation of funds, and operating as an unregistered commodity trading advisor through his company, Negus Capital Incorporated (NCI). The court found that between March 16, 2017, and February 21, 2018, Butler unlawfully solicited $305,000 from over 70 customers for binary options trading.

Butler falsely told customers he would pool deposits between $500 and $5,000 into a single trading account and use the funds to trade binary options on their behalf. He also claimed to deposit payments of $5,000 or more into separate accounts, managing and trading on behalf of each customer for a fee. However, the court found Butler misappropriated the majority of the funds for personal use, including spending on jewelry, electronics, and gift cards.

The CFTC continues to pursue litigation against NCI, seeking to recover ill-gotten gains, additional civil penalties, and further bans on trading and registration. The Alabama Securities Commission assisted the CFTC in this investigation.

James Deacon, Kevin Samuel, Erica Bodin, and Rick Glaser of the CFTC’s Division of Enforcement were responsible for the case.

Source: CFTC.gov

Source: https://www.cftc.gov/PressRoom/PressReleases/8184-20