Holton Buggs has been sanctioned for failing to cooperate with the Traders Domain Receiver.

As detailed by the Receiver in his February 5th Second Report;

Defendant Buggs refused to provide information regarding his assets as required by the Court’s orders, and he refused the Receiver’s attempts to depose him regarding his assets.

As a result, the Receiver filed a Motion for Order to Show Cause against Buggs .. that was heard by Magistrate Enjolique A. Lett on December 18, 2024.

After hearing, on December 27, 2024, the Magistrate issued an Order for Sanctions finding that Defendant Buggs violated the SRO and ordering that Buggs provide the information required under the SRO to the Receiver, appear for an asset deposition, and pay a monetary sanction of $9,583.40.

Under threat of further sanctions, Buggs (right) finally complied with the court’s orders on January 13th.

On January 13, 2025, Defendant Buggs provided the Receiver with a financial statement and supporting documents that he labeled a “work in progress” and an “interim report”.

On January 16, 2025, Defendant Buggs gave his asset deposition to the Receiver.

The Receiver notes that, as of February 5th, Buggs hasn’t paid his sanctions penalty to the Traders Domain Receivership.

Through his attorney, Buggs claims his “assets are frozen and therefore he cannot pay the sanction”.

In response to this the Receiver cites Buggs asset deposition, wherein Buggs claims confirmed he was still earning “about $100,000” a month through iBuumerang.

Whether the court takes further action against Buggs remains to be seen.

In the meantime, the Receiver has identified the following assets of Buggs that may be subject to forfeiture:

  • two residential properties in Houston, Texas
  • three “Fifth Ward” vacant lots in Houston, Texas
  • a residential property in Tampa, Florida
  • a Muhammad Ali painting
  • “a number of luxury branded watches”
  • “several items of jewelry Buggs identified”
  • a 2020 Tesla
  • a Spyder GS motorcycle
  • a SeeDoo speed boat
  • money put down on the purchase of 3 condos in Miami, Florida
  • a glock gun
  • an undisclosed amount of cash
  • equity investment in various start-up companies
  • money owed to Buggs from Organo Gold
  • designer clothes and furniture
  • potential business assets and
  • business interests

Other points of interest in the Receiver’s report include:

  • defendant Juan Herman, aka JJ Herman, has fled to Dubai, leaving two properties behind that could be subject to forfeiture;
  • Fredirick Teddy Joseph Safranko and David William Negus-Romvari remain in violation of the court’s orders and are in hiding; and
  • Alejandro Santiestaban, aka Alex Santi and Archie Rice have failed to provide complete financial information to the Receiver, prompting filing of a contempt motion on January 29th.

It should also be noted that a number of The Traders Domain defendants, including Mike Sims, asserted their Fifth Amendment right when pressed on details of their assets.

This suggests some of The Traders Domain Defendants are anticipating related criminal charges.

On that note, Teddy Safranko (right) David Negus-Romvari appear to still be trying to defraud consumers through TrueBlueFX.

As part of efforts to keep the Ponzi going, towards the end of its run The Traders Domain informed investors it had been sold to TrueBlueFx.

At the outset of this case, the TrueBlueFX website was online and still holding itself out as actively trading.

The Receiver obtained control of the TrueBlueFX website and had it redirected to the Receiver’s website.

TrueBlueFX began a new website with a new host and continues to hold itself out as actively trading. The Receiver has contacted the host and is seeking to obtain control of the new website.

The Receiver believes the TrueBlueFX website is being operated by Defendants Safranko and/or Negus-Romvari in blatant violation of the Court’s orders.

Neither Trader Domain nor TrueBlueFX have turned over any financial information to the Receiver as required by the Court’s orders.

With respect to clawback proceedings against The Traders Domain net-winners, the Receiver writes he is

continuing to gather bank records to identify the recipients of false profits.

Specific to promoters of The Traders Domain;

The Receiver is investigating the investor funds paid in commissions.

Regardless of whether the salespersons knew or should have known that Trader’s Domain or the other Defendant entities were being operated illegally, the commissions the salespersons received are recoverable as fraudulent conveyances.

The Receiver identified approximately 12 “sponsors” who worked with Defendant Sims in soliciting investors to Traders Domain and the Receiver’s attorney sent each of these persons a copy of the relevant court orders and a demand that they each provide an accounting of monies they received as a result of introducing investors to Traders Domain.

Finally, with respect to The Traders Domain victims filing claims, the Receiver writes;

The Receiver is working with his team on a claims process to propose to the Court that will enable investors in Traders Domain to submit their claims to the receivership for participation in the distribution of assets recovered in the receivership.

The Receiver anticipates this proposed claims procedure will be submitted to the Court within the next 30 days. The Receiver expects to receive more than 5,000 claims.

Stay tuned for updates as BehindMLM continues to cover the CFTC’s The Traders Domain Ponzi case.