May 22, 2017
Federal Court Orders Utah Resident Kimball Parker and MakeYourFuture, LLC to Pay Customer Restitution and Civil Monetary Penalties for Fraud in Connection with Offering and Selling a Futures Trading System
Default Judgment also Entered against Florida Resident Timothy Baggett, Changes Worldwide LLC, and Changes Trading LLC
Washington DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Bruce S. Jenkins in the U.S. District Court for the District of Utah entered a Consent Order against Defendants Kimball Parker of Lehi, Utah, and his Utah company, MakeYourFuture, LLC (MYF), who were charged with fraud and other violations in connection with the offering and sale of a futures trading system marketed under the names “MakeYourFuture” and “Changes Trading.” The Consent Order, entered on May 19, 2017, requires Parker and MYF, jointly and severally, to pay restitution to defrauded customers totaling $853,294.98, plus a $354,000 civil monetary penalty.
Default Judgment Order
Previously, on February 1, 2017, the Court entered a Default Judgment against Defendants Timothy Baggett of Lakeland, Florida, and his Florida companies, Changes Worldwide LLC and Changes Trading LLC (together, Changes), also for fraud and other violations in connection with their role in the offering and sale of Parker’s futures trading system. The Default Judgment requires Baggett and Changes, jointly and severally, to pay restitution to defrauded investors totaling $498,600.97, plus a $1,495,802.91 civil monetary penalty.
In addition to the monetary sanctions, Defendants are prohibited from, among other things, directly or indirectly controlling or directing trading for or on behalf of other persons, soliciting or accepting funds for trading and seeking registration in any capacity, acting in any capacity requiring registration or exempted from registration, or acting as a principal of any person registered, required to be registered or exempt from registration.
The Consent Order and the Default Judgment arise from a CFTC enforcement action filed against the Defendants on September 21, 2016 (See CFTC Complaint and Press Release: 7469-16).
Court Finds that Defendants Induced a Least 289 Customers to Pay Them over $853,240 for the Trading System
In the Consent Order and Default Judgment, the Court found that the Defendants fraudulently solicited customers to purchase a futures trading system by misrepresenting the profitability and success of the trading system. From at least March 2014 through the present, the Defendants induced at least 289 customers to pay them more than $853,249.98 for the trading system.
The Court found that the Defendants falsely represented to customers and prospective customers that the Defendants’ trading system had “never had a losing month,” and generated “300% annual returns.” Defendants also posted so-called “documented and verifiable results” on their websites showing returns of between 11% and 68% each month from January through December 2014, when, in fact, they did not do any such trading. Parker and Baggett consistently lost money trading futures in their personal accounts, and customers also consistently lost money trading using Defendants’ trading system.
The CFTC cautions that orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers many not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
The CFTC thanks the Florida Office of Financial Regulation and the U.S. Attorney for the District of Utah for their assistance in this matter.
CFTC Division of Enforcement staff members responsible for this case are Ashley J. Burden, Jeffrey Gomberg, Elizabeth M. Streit, Scott Williamson, and Rosemary Hollinger, as well as Jeremy Christianson from the CFTC’s Office of Data and Technology.
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CFTC’s Trading Systems Sold on the Internet Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide warning signs of fraud, including the Commodity Trading Systems Sold on the Internet Advisory, which helps customers identify this potential fraud.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Last Updated: May 22, 2017