Las Vegas resident Toney Blondo Eggleston and his company, My Global Leverage, LLC (MGL), have been slapped with a default judgment by the U.S. District Court for the District of Nevada for running an illegal precious metals scheme. The CFTC originally filed a complaint against Eggleston and MGL in April 2015.
Judge Andrew P. Gordon’s order, issued September 1, 2016, demands that Eggleston and MGL jointly pay $692,488 in restitution to defrauded customers and a $773,040 civil penalty. Both are permanently banned from trading, soliciting, and registering with the CFTC, and are barred from future illegal off-exchange precious metals transactions.
Between July 2011 and November 2012, MGL, under Eggleston’s direction, allegedly solicited retail customers via telephone to participate in financed precious metals transactions. The CFTC found these transactions constituted illegal, off-exchange retail commodity transactions. Approximately 12 customers were involved, with MGL receiving a total of $786,085. While $93,597 was returned to customers, they ultimately suffered losses of $692,488. MGL profited from the scheme, collecting $257,680 in commissions and fees.
Crucially, the court found that no actual delivery of precious metals ever occurred to customers involved in these financed transactions. This violates the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which prohibits leveraged, margined, or financed transactions unless physical delivery of the metal takes place within 28 days.
The CFTC cautions that victims may not recover all lost funds, as the defendants may lack sufficient assets. The agency vows to continue pursuing accountability in cases of commodity fraud. The U.S. Attorney’s Office for the District of Nevada assisted in the investigation.
Glenn Chernigoff, Michelle Bougas, Alison B. Wilson, and Rick Glaser of the CFTC Division of Enforcement led the case.
Source: CFTC.gov
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