NEW YORK, NY – May 25, 2012 – Federal regulators have filed charges against Stephen Craig Symons, of Corona del Mar, California, alleging fraudulent sales practices related to automated trading systems. The U.S. Commodity Futures Trading Commission (CFTC) filed a complaint in the U.S. District Court for the Southern District of New York on May 11, 2012, accusing Symons and co-defendants of misleading investors in connection with the Boomer and Victory Trading Systems.
The CFTC alleges that Symons, along with James David Kline of Van Nuys, California, and companies CTI Group, LLC and Cooper Trading, engaged in a systematic pattern of false statements and omissions when marketing the trading systems. These systems were sold to over 1,000 clients for between $5,000 and $6,000 each, generating at least $11 million in revenue for CTI.
According to the complaint, the defendants misrepresented several key aspects of their business and the trading systems, including the length of time CTI had been in business, their experience in developing and marketing such systems, the qualifications of their personnel (who allegedly used fictitious names), the track record and profitability of the systems, and the associated transaction costs. Salespeople, including Kline, are accused of falsely advertising a money-back guarantee and downplaying the risks of trading futures contracts through their systems.
On May 14, 2012, Judge Andrew L. Carter, Jr. issued an emergency order freezing the defendants’ assets and preventing the destruction of relevant records. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for June 21, 2012.
The CFTC is also pursuing relief defendants Snonys, Inc. and Dragonfyre Magick Incorporated, companies allegedly owned or operated by Symons and Kline, respectively, seeking to recover funds obtained through the alleged fraud. The agency is seeking disgorgement of ill-gotten gains, restitution, civil monetary penalties, and permanent trading and registration bans against the defendants. A special toll-free number, 1-866-720-9071, has been established for potential victims of the alleged scheme.
Source: CFTC.gov
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