MLM My Global Leverage LLC amid $55M fraud

Federal Court in Nevada orders Toney Blondo Eggleston and his firm to pay $1.4m in restitution and a monetary penalty for engaging in multi-level marketing scheme (MLM). How was MLM My Global Leverage performed?

2 September, AtoZForex – The Federal court in Nevada has issued an order against Toney Blondo Eggleston and his company My Global Leverage LLC, who allegedly executed an off-exchange precious metals trade scheme.

MLM My Global Leverage LLC amid $55M fraud

Mr. Eggleston and his company were ordered by the court to compensate 12 investors the sum of $ 700,000. As it appears, Toney Blondo Eggleston and his company My Global Leverage have received almost $800,000 in deposits from their clients. The US Commodity Futures Trading Commission (CFTC) Order also requires MGL and Eggleston, jointly and severally, to pay $692,488 in restitution and a $773,040 civil monetary penalty. The official order from the CFTC states:

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“The Order also imposes permanent trading, solicitation and registration bans against MGL and Eggleston, and a permanent injunction that prohibits them from engaging in illegal, off-exchange precious metals transactions.”

The clients have already been compensated $93,597, where the remaining sum is about to be recovered. Toney Blondo Eggleston has been conducting his business in Las Vegas in the period between July 2011 and November 2012.

The victims of the off-exchange precious metal trading fraudulent scheme were solicited by cold calls from the company. The firm has been offering to engage in margined, leveraged or financed precious metals business. In the period of My Global Leverage operations, a total of $ 786,000 was wired to the company’s account. Additionally, the firm has charged the commissions on the transactions, adding to the ill-gains another $257,680.

The fraudulent scheme of Hunter Wise

My Global Leverage LLC was conducting the precious metals transactions with the help of another firm, namely Hunter Wise LLC. The firm was also charged by the CFTC with fraud for engaging in illegal, off-exchange precious metals trading.

Two years ago, in February 2014, the court found that Hunter Wise actually had no metal to deliver to its customers. Moreover, it was not regulated as a Futures Commission Merchant. Hunter Wise has two owners, namely Fred Jager and Harold Edward. Firm’s clients have lost almost $52.6 million while dealing with the company. Hunter Wise was also ordered to pay $55.4 million, the maximum amount of civil monetary penalty. The owners and their firm have been charged with executing the multi-level marketing scheme, as the firm was hiring the companies claiming to be the precious metals dealers.

The firms allegedly were claiming to be selling physical precious metals, such as gold, silver, palladium, copper and platinum. After redirecting the funds to the Hinter Wise, the dealers were enjoying generous commissions.

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