Release Number 6155-11

December 7, 2011

CFTC Charges Pro Trading Course, LLC, and Richard Regan with Solicitation Fraud

Chicago-based defendants charged with fraudulently soliciting the public to enroll in a commodity futures training program

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today charged Chicago-based Pro Trading Course, LLC (PTC), a registered commodity trading advisor, and Richard Regan, PTC’s sole principal and a registered floor broker with fraudulently soliciting members of the public to enroll in a commodity futures training program. The program purportedly was designed to teach individuals how to become successful PTC proprietary traders.

The complaint alleges that PTC solicited clients for its training program through the use of employment advertisements placed on Craig’s List and other websites. After individuals responded to the employment advertisements, PTC and Regan allegedly used false and misleading promotional material and sales solicitations that overstated the advancement opportunity and profit potential of the commodity futures training program PTC was selling. The defendants’ promotional material and solicitations also allegedly failed to disclose that no PTC commodity futures trader ever advanced beyond Level 1 of the program or received the large monthly profit distributions depicted on PTC’s “Payout Charts.”

Further, the complaint alleges that PTC and Regan used false and misleading promotional material and sales solicitations to sell access to PTC’s Virtual Trading Room (VTR). Defendants described VTR as a “trade room” operated on trading days by Regan and his team of purportedly elite traders that allowed subscribers to observe and make the same trades as Regan and his team, according to the complaint. The promotional material and sales solicitations allegedly created the impression that VTR sessions involved actual commodity futures trading, but failed to disclose that Regan and his team conducted only simulated trading in these VTR sessions.

In the continuing litigation, the CFTC seeks repayment of funds PTC received from enrollees in its commodity futures training program, civil monetary penalties and a permanent injunction prohibiting PTC and Regan from violating federal commodity laws.

The CFTC thanks the National Futures Association for its assistance.

CFTC Division of Enforcement staff responsible for this case are Diane M. Romaniuk, Lindsey Evans, Ava M. Gould, Mary Elizabeth Spear, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.

Media Contact
Dennis Holden

Last Updated: December 7, 2011