According to a court order issued in Nevada, the perpetrator of an off-exchange precious metals trading scheme Toney Blondo Eggleston and his company My Global Leverage LLC have been mandated to compensate 12 investors to the tune of $700,000 after receiving almost $800,000 in deposits.
The clients of My Global Leverage LLC, which is under the control of Toney Blondo Eggleston, have already been repaid $93,597 with the remaining funds yet to be recovered. The owner of the company conducted his business in Las Vegas between July 2011 and November 2012.
Retail clients were solicited by telephone to engage in leveraged, margined, or financed precious metals transactions. During the period of the operation of the scheme a total of $786,000 was wired to My Global Leverage. The firm charged commissions on the transactions to its clients, amounting to about $257,680.
Digitex Futures Partners with ChainlinkGo to article >>
A Multi-Level Marketing Scheme With Precious Metals
The precious metals transactions which My Global Leverage LLC engaged in were conducted with a company called Hunter Wise LLC. The company was charged by the CFTC with fraud as it engaged in illegal, off-exchange precious metals transactions.
Back in February 2014, the court found that Hunter Wise had no actual metal to deliver its clients and it was not registered as a Futures Commission Merchant. Clients of the firm owned by two individuals named Fred Jager and Harold Edward lost close to $52.6 million. The firm was also mandated to pay the maximum amount of civil monetary penalty, allowed by the law – $55.4 million.
The precious metals scam conducted by Hinter Wise and its directors Fred Jager and Harold Edward has been orchestrated as a multi-level marketing scheme. The firm recruited companies claiming to the retail precious metals dealers, who were soliciting funds from clients.
The companies claimed to be selling physical precious metals, including gold, silver, platinum, palladium, and copper. After forwarding the funds to Hunter Wise, the dealers were sharing hefty commissions. The CFTC has already identified a number of the fraudulent entities and mandated restitution payments.