Newport Coast, CA – Toney Blondo Eggleston is facing charges of precious metals fraud following a civil enforcement action filed by the U.S. Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the District of Nevada on April 27, 2015. Eggleston, the owner and managing member of My Global Leverage, LLC (MGL), is accused of conducting illegal, off-exchange precious metals transactions with retail customers.
The CFTC complaint alleges that between July 16, 2011, and November 2012, MGL, under Eggleston’s direction, solicited customers via telephone to participate in leveraged, margined, or financed precious metals transactions. Approximately 12 customers reportedly paid around $786,000 to MGL, resulting in commissions and fees of approximately $257,680 for the company.
These transactions violated the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which prohibits leveraged, margined, or financed transactions unless actual delivery of the metal occurs within 28 days. The CFTC asserts that MGL never delivered any metal to its customers.
The illegal transactions were allegedly executed through Hunter Wise, LLC, which was previously subject to CFTC enforcement actions in December 2012, facing charges of fraud and illegal off-exchange precious metals transactions. A court found in February 2014 that Hunter Wise lacked the metal to fulfill customer orders and violated the Commodity Exchange Act (CEA). The U.S. Court of Appeals for the Eleventh Circuit later affirmed the court’s jurisdiction and findings in April and May of 2014, confirming millions in customer losses due to fraudulent misrepresentations.
The CFTC is seeking disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the CEA from both MGL and Eggleston. Glenn Chernigoff and Michelle Bougas of the CFTC’s Division of Enforcement are leading the case.
Source: CFTC.gov
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