New York, NY – Kevin Symons of Foothill Ranch, California, and his company, FTS Financial, Inc., along with Jerry Austin Simmons of Charlotte, North Carolina, have been penalized by the Commodity Futures Trading Commission (CFTC) for operating a fraudulent online futures trading forum. Judge Ronnie Abrams of the U.S. District Court for the Southern District of New York entered Consent Orders against all three defendants on December 12, 2017.
The CFTC’s investigation, initiated with a complaint filed September 26, 2016, revealed that Simmons falsely advertised his “Real Time Trade Room” as a platform where he “live” traded futures contracts. In reality, all trading displayed was hypothetical or simulated. Simmons also fabricated a successful trading record to attract clients to open managed futures accounts, all while failing to register with the CFTC as a Commodity Trading Advisor (CTA).
FTS Financial and Symons further perpetuated the fraud by falsely claiming the Room’s trading was conducted by a “professional trader” using real money and generating returns exceeding 400% when annualized. The CFTC found that no actual futures contracts were ever traded in the Room; all activity was simulated.
As a result of the fraudulent scheme, FTS Financial is ordered to pay $2.4 million in disgorgement and a $2.4 million civil monetary penalty. Symons must pay $289,000 in disgorgement and a $100,000 penalty, while Simmons is responsible for $180,000 in disgorgement and a $180,000 penalty. All three defendants are subject to permanent trading and registration bans and are prohibited from violating the Commodity Exchange Act and CFTC Regulations in the future.
The case highlights the CFTC’s ongoing efforts to protect investors from fraudulent schemes in the commodities markets and to ensure those offering trading advice are properly registered.
Source: CFTC.gov
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