Aaron B. Butler, Fraud, Alabama 2021

Muscle Shoals, AL – Aaron B. Butler, owner of Negus Capital Incorporated (NCI), has been slapped with a hefty default judgment by the U.S. District Court for the Northern District of Alabama for engaging in fraudulent solicitation and misappropriation of funds, the Commodity Futures Trading Commission (CFTC) announced today, April 7, 2021.

Judge Liles C. Burke’s order, dated March 31, 2021, requires NCI to pay $294,545 in restitution to customers who were defrauded. In addition to the restitution, NCI faces a civil monetary penalty of $883,635. The order also permanently bans NCI from violating the Commodity Exchange Act, registering with the CFTC, and trading in any CFTC-regulated markets.

This judgment stems from a 2019 enforcement action brought against Butler and NCI, alleging fraudulent solicitation, misappropriation, and unregistered activity. Butler was previously issued a permanent injunction and ordered to pay $755,000 in restitution and penalties in a related order.

According to the CFTC, between March 16, 2017, and February 21, 2018, Butler and NCI unlawfully solicited $294,545 from 70 individuals, promising to pool their funds and trade binary options contracts on the North American Derivatives Exchange (Nadex). Instead of trading as promised, the CFTC found that Butler misappropriated the funds for personal expenses, including jewelry, purchases from Apple stores, and Toys “R” Us gift cards.

The CFTC cautioned that victims may not recover all lost funds, as the wrongdoers may lack sufficient assets. The agency stated it remains committed to protecting customers and holding accountable those who violate the Commodity Exchange Act. The Alabama Securities Commission assisted in the 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/8375-21