The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Kevin Michael Symons of Foothill Ranch, California, his company FTS Financial, Inc. (FTS) of Irvine, California, and Jerry Austin Simmons of Charlotte, North Carolina. The suit, filed in the U.S. District Court for the Southern District of New York, alleges a fraudulent scheme involving Simmons’ “Real Time Trade Room,” an online forum marketed as a live futures trading observation platform.
The CFTC alleges that Symons, FTS, and Simmons falsely promoted the Room by claiming Simmons engaged in “live” futures trading, demonstrating his purported expertise and profitability to potential clients. Promotional materials promised viewers would witness Simmons physically entering and executing trades, observing both winning and losing outcomes. However, the complaint asserts Simmons never actually traded live futures contracts within the Room, instead conducting only hypothetical or simulated trades.
Furthermore, the CFTC claims the defendants misrepresented Simmons’ trading experience and success. They allegedly fabricated a profitable track record to attract clients, despite Simmons’ limited and unprofitable trading history – a brief period of personal trading in the 1970s. FTS reportedly displayed this misleading performance data on its website without the legally required disclaimers regarding the limitations of hypothetical results.
The complaint also details a “Broker Assist Program” (BAP) where Simmons solicited clients to allow him to “direct” their futures trading accounts. Crucially, Simmons allegedly did so without being registered with the CFTC as an Associated Person (AP) of a Commodity Trading Advisor (CTA), a violation of federal regulations.
The CFTC alleges FTS profited over $2.5 million from this scheme, generating revenue through approximately 700 to 1,000 daily cold calls to prospective clients nationwide, offering access to the fraudulent “Real Time Trade Room.” Symons is also charged for FTS’s violations as a controlling person who knowingly induced the fraudulent activity or failed to act in good faith. The CFTC is seeking penalties, including disgorgement of ill-gotten gains and civil monetary penalties, against all three defendants.
Source: CFTC.gov
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