Richard D. Neal of North Carolina and his company, Golden Signals LLC, have been charged with fraud by the Commodity Futures Trading Commission (CFTC). The charges stem from a scheme involving binary options solicitations and trading, conducted from approximately October 2016 through November 2021.
The CFTC alleges that Neal and Golden Signals LLC engaged in fraudulent practices while acting as a commodity trading advisor (CTA) and commodity pool operator (CPO). They also failed to register as a CTA and CPO, and did not adhere to required advertising disclosures.
According to the CFTC order, Neal and Golden Signals LLC falsely claimed Neal was a highly successful trader, boasting a high profit percentage and daily earnings of $500-$1,000. They promised customers financial growth by following “Golden Signals,” despite Neal having an overall losing trading record. The solicitations included misleading client testimonials and training videos using demo accounts without proper disclosures.
The investigation revealed that approximately 10 pool participants lost around $410,000 in a managed account trading pool. An additional 1,600 customers were defrauded out of at least $896,673 through the sale of binary options signals, training programs, and strategy courses.
As a result of the settlement, Neal and Golden Signals LLC are required to pay $409,965 in restitution to affected customers, $896,673 in disgorgement, and a $1,306,638 civil monetary penalty. They are also permanently banned from trading on CFTC-registered entities and engaging in any activities requiring CFTC registration. Furthermore, they are prohibited from entering into any transactions involving commodity interests.
The CFTC acknowledged the assistance of Nadex in the investigation. Staff members Nina Ruvinsky, Heather Dasso, Allison Passman, Scott Williamson, and Robert Howell were responsible for the case.
The CFTC advises the public to verify registration with the agency before investing and provides resources to identify and report potential fraud, including advisories on commodity pools and binary options.
Source: CFTC.gov
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