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The Alabama company has to pay $ 1.1 million for raw material pool fraud



The Commodity Futures Trading Commission said Wednesday that a federal district court has issued a standard judgment of more than $ 1.1 million against an Alabama company and its owners for fraud.

The CFTC said last week's decision by the U.S. District Court in Huntsville, Alabama, requires Muscle Shoals, Alabama-based Negus Capital Inc., owned by Aaron B. Butler, to pay $ 294,545 in compensation to fraudulent customers and a fine at $ 883,635. The order also provided that NCI would trade permanently in some CFTC-regulated markets, among other provisions.

The CFTC said the order stemmed from a 2019 enforcement measure that accused Mr. Butler and NCI for fraudulent solicitation, abuse and registration violation. [1

9659002] The CFTC statement stated that the court had previously issued a permanent injunction against Mr. Butler, who demanded that he pay a total of $ 755,000 in restitution and civil penalties for violating the Commodity Exchange Act and CFTC rules.

The order states that In March 2017 and February 2018, through Mr. Butler, urged and accepted the company $ 294,545 illegally from 70 members to trade binary options contracts on the North American derivatives exchange, deceived these customers and acted as an unregistered commodity pool operator. [19659002] Binary options are options where the customer either gets paid out or loses all of his investment in the trade

Instead of trading customer funds as promised, NCI used most, if not all, funds for Mr. Butler's personal benefit, including spending tens of thousands of dollars on jewelry purchased at Apple stores and Toys "R". We gift cards.

Contact information about Mr. Butler was not available.

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