$498 million default judgement awarded in Changes Trading case
Last year the CFTC filed a lawsuit against Changes Trading and co-owners Timothy Baggett and Kimball Parker.
Negotiations between Parker and the CFTC are ongoing but Baggett has thus far failed to make an appearance in the case.
On February 1st the CFTC filed a Motion for Default Judgement, which was granted the same day.
In his order Judge Jenkins established that Changes Trading and Baggett had been properly served and, based on submitted evidence, that the CFTC’s allegations ‘are well-pleaded and hereby taken as true‘.
Timothy Baggett’s websites contained numerous fraudulent misrepresentations and omissions designed to mislead customers and prospective customers into believing that the trading system was profitable and effective.
Baggett made similar representations during presentations to customers and prospective customers.
In reality, Baggett’s “documented and verifiable results” were false.
The results touted by Baggett in the (Changes Trading) websites, eBooks, and presentations did not reflect any actual trading of real money in any futures account.
Baggett’ websites claimed that users of the trading system “earn a full time income working just 2 hours a day”.
Baggett’s claims were false. During the CFTC’s investigation, defendants testified that they were unaware of any person who makes or has made a full-time income using the system, including (Baggett and Parker) themselves.
In reality, most if not all of the customers who used Changes Trading’s trading system lost money.
The order goes on to detail
- false representations of Baggett and Parker being professional and profitable traders
- fudging client testimonials on the Changes Trading website
- falsely representing to Changes Trading customers that their “live training room” trades was using real money in live trades, when in fact it was a simulation
- the advertised 90% success rate of the Changes Trading robot was a lie, the robot had “never been tested using real money”, was deemed “dangerous” and “didn’t work”
In total Changes Trading, Timothy Baggett and Kimball Parker scammed $498.6 million out of their victims.
BehindMLM first warned the general public about Changes Worldwide back in November, 2013.
Judge Jenkins has ordered a preliminary injunction against Changes Trading, Changes Worldwide and Timothy Baggett, prohibiting them from further defrauding the general public.
Baggett is also specifically banned from
- trading on any registered entity
- entering into a transaction involving commodity interests
- having commodity interests traded on his behalf
- directly or indirectly controlling any account involving commodity interests
- soliciting, receiving or accepting funds from any person for the purpose of purchasing or selling commodity interests
- applying for registration, claiming exemption from registration or engaging in any activity that requires registration with the CFTC in any capacity
- acting as a principal, agent, or any other officer or employee of any person or entity registered, exempt from registration or required to be registered with the CFTC
Baggett, Changes Trading and Changes Worldwide have been ordered to pay back the entire $498.6 million they stole in restitution. A further $1.49 million is payable as a civil penalty.
Post-judgement interest is also payable and being calculated from February 1st.
After being received by a court-appointed Monitor, recovered funds will eventually be distributed to eligible Changes Trading victims.
Stay tuned for updates on Kimball Parker…