Chicago, IL – The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against James A. Donelson of Aurora, Illinois, and three associates, alleging a multi-million dollar fraud scheme targeting over 400 customers. The complaint, filed in the U.S. District Court for the Northern District of Illinois, also names Long Leaf Trading Group, Inc., Timothy M. Evans of Tulum, Mexico, Jeremey S. Ruth of Austin, Texas, and Andrew D. Nelson of Elmhurst, Illinois as defendants.
The CFTC alleges that from June 2015 through December 2019, Donelson, Evans, Ruth, and Nelson, acting through Long Leaf Trading Group, knowingly misled customers about the performance of the company’s “Time Means Money” options trading program. Customers were allegedly provided with false and misleading statements regarding the program’s success, while the defendants were aware that *all* participants lost money. Approximately $6.1 million in customer losses occurred during the scheme’s operation.
According to the CFTC, Long Leaf generated over $4.4 million in commissions through these trading recommendations, prioritizing profits over honest disclosure. The agency is seeking restitution for the defrauded customers, as well as disgorgement of the ill-gotten gains, civil monetary penalties, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations. The CFTC also seeks permanent trading and registration bans for the defendants.
In separate, settled actions, the CFTC also penalized two former Long Leaf associated persons. Scott J. Gecas of Tinley Park, Illinois, was ordered to pay a $150,000 civil monetary penalty and is barred from trading and registration for four years. James E. Leeney of Chicago, Illinois, faces a $350,000 penalty and a five-year ban from trading and registration. Both Gecas and Leeney are required to cease and desist from further violations of the CEA and CFTC regulations.
The CFTC stated this case highlights their commitment to combating fraud, especially schemes that exploit registration status to mislead investors. The agency urges caution when considering “trading programs” offered by brokers or advisors. The National Futures Association assisted in the investigation.
Source: CFTC.gov
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