La Jolla, CA – Richard C. Regan, 42, has been ordered to pay $693,300 in penalties and restitution following a default judgment entered by Judge James B. Zagel of the U.S. District Court for the Northern District of Illinois on May 29, 2012. The judgment stems from a Commodity Futures Trading Commission (CFTC) enforcement action filed December 7, 2011, alleging fraudulent solicitation related to a commodity futures training program offered by Pro Trading Course, LLC (PTC).
Regan, along with PTC, was found to have misrepresented the potential for profit and advancement within the training program. The CFTC alleged that promotional materials and sales pitches overstated the opportunities available to participants. According to the court order, of the 126 clients who completed the training and became proprietary traders for PTC, none advanced beyond the initial Level 1 stage.
Furthermore, the court found that Regan and PTC falsely implied that traders were achieving substantial profits, displaying “Payout Charts” that did not reflect reality. No trader ever met the monthly profit targets set by Regan, nor did they receive payouts matching those depicted in the promotional materials.
The judgment also addressed deceptive practices surrounding PTC’s “Virtual Trading Room” (VTR). The CFTC found that the VTR sessions created the illusion of live commodity futures trading, while in actuality, Regan and his team were only conducting simulated trades. This misled potential clients into believing they were observing real-time trading strategies.
The court’s order mandates that Regan and PTC jointly and severally pay a $461,100 civil monetary penalty, alongside $232,200 in restitution to affected customers. They are also permanently banned from engaging in futures trading and registration with the CFTC, and prohibited from violating the Commodity Exchange Act and related regulations. The CFTC acknowledged the assistance provided by the National Futures Association in the investigation.
The case was led by CFTC staff members Diane M. Romaniuk, Lindsey Evans, Ava M. Gould, Mary Elizabeth Spear, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
Source: CFTC.gov
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