United States District Court, D. Utah
U.S. Commodity Futures Trading Commission, Plaintiff,
Kimball Parker; MakeYourFuture, LLC; Timothy Baggett; Changes Worldwide LLC; Changes Trading LLC, Defendants.
J. Burden Sr. Trial Attorney
W. Pugsley Attorney for Make Your Future, LLC
CONSENT ORDER FOR PERMANENT INJUNCTION, CIVIL
MONETARY PENALTY, AND OTHER EQUITABLE RELIEF AGAINST
DEFENDANTS KIMBALL PARKER AND MAKEYOURFUTURE, LLC
S. Jenkins U.S. District Court Judge
September 21, 2016, Plaintiff Commodity Futures Trading
Commission ("Commission" or "CFTC") filed
a Complaint against Defendants Kimball Parker,
MakeYourFuture, LLC, Timothy Baggett, Changes Worldwide LLC,
and Changes Trading LLC, seeking injunctive and other
equitable relief, as well as the imposition of civil
penalties, for violations of the Commodity Exchange Act
("Act"), 7 U.S.C. §§ 1-26 (2012), and the
Commission's Regulations ("Regulations")
promulgated thereunder, 17 C.F.R. § 1.1 et seq.
(2016). The Court entered a preliminary injunction against
Defendants Parker and MakeYourFuture, Inc. ("MYF")
on September 29, 2016. The Court entered a final judgment by
default, permanent injunction, civil monetary penalties, and
other statutory and equitable relief against Defendants
Baggett, Changes Worldwide LLC ("Changes
Worldwide"), and Changes Trading LLC ("Changes
Trading") on February 1, 2017.
CONSENTS AND AGREEMENTS
effect settlement of all charges alleged in the Complaint
against Defendants Parker and MYF without a trial on the
merits or any further judicial proceedings, Defendants Parker
Consent to the entry of this Consent Order for Permanent
Injunction, Civil Monetary Penalty and Other Equitable Relief
Against Defendants Parker and MYF ("Consent
Affirm that they have read and agreed to this Consent Order
voluntarily, and that no promise, other than as specifically
contained herein, or threat, has been made by the Commission
or any member, officer, agent or representative thereof, or
by any other person, to induce consent to this Consent Order;
Acknowledge service of the summons and Complaint;
Admit the jurisdiction of this Court over Defendants Parker
and MYF and the subject matter of this action pursuant to
Section 6c of the Act, 7 U.S.C. § 13a-l (2012);
Admit the jurisdiction of the CFTC over the conduct and
transactions at issue in this action pursuant to the Act, 7
U.S.C. §§ 1-26 (2012);
Admit that venue properly lies with this Court pursuant to
Section 6c(e) of the Act, 7 U.S.C. §13a-l(e) (2012);
a. Any and all claims that Defendant Parker and MYF may
possess under the Equal Access to Justice Act, 5 U.S.C.
§ 504 (2012) and 28 U.S.C. § 2412 (2012), and/or
the rules promulgated by the Commission in conformity
therewith, Part 148 of the Regulations, 17 C.F.R.
§§ 148.1 et seq. (2016), relating to, or
arising from, this action;
b. Any and all claims that they may possess under the Small
Business Regulatory Enforcement Fairness Act of 1996, Pub. L.
No. 104-121, §§ 201-253, 110 Stat. 847, 857-868
(1996), as amended by Pub. L. No. 110-28, § 8302, 121
Stat. 112, 204-205 (2007), relating to, or arising from, this
c. Any claim of Double Jeopardy based upon the institution of
this action or the entry in this action of any order imposing
a civil monetary penalty or any other relief, including this
Consent Order; and
d. Any and all rights of appeal from this action;
Consent to the continued jurisdiction of this Court over them
for the purpose of implementing and enforcing the terms and
conditions of this Consent Order and for any other purpose
relevant to this action, even if Defendants Parker or MYF now
or in the future reside outside the jurisdiction of this
Agree that they will not oppose enforcement of this Consent
Order on the ground, if any exists, that it fails to comply
with Rule 65(d) of the Federal Rules of Civil Procedure and
hereby waive any objection based thereon;
Agree that neither they nor any of their agents or employees
under their authority or control shall take any action or
make any public statement denying, directly or indirectly,
any allegation in the Complaint or the Findings of Fact or
Conclusions of Law in this Consent Order, or creating or
tending to create the impression that the Complaint and/or
this Consent Order is without a factual basis; provided,
however, that nothing in this provision shall affect their:
(a) testimonial obligations, or (b) right to take legal
positions in other proceedings to which the CFTC is not a
party. Defendants Parker and MYF shall undertake all steps
necessary to ensure that all of their agents and/or employees
under their authority or control understand and comply with
consenting to the entry of this Consent Order, neither admit
nor deny the allegations of the Complaint or the Findings of
Fact and Conclusions of Law in this Consent Order, except as
to jurisdiction and venue they admit. Further, Defendants
Parker and MYF agree and intend that the allegations
contained in the Complaint and all of the Findings of Fact
and Conclusions of Law contained in this Consent Order shall
be taken as true and correct and be given preclusive effect,
without further proof, in the course of: (a) any current or
subsequent bankruptcy proceeding filed by, on behalf of, or
against Defendant Parker or MYF; (b) any proceeding pursuant
to Section 8a of the Act, 7 U.S.C. § 12a (2012), and/or
Part 3 of the Regulations, 17 C.F.R. §§ 3.1 - 3.75
(2016); (c) any proceeding to enforce the terms of this
Consent Order; and/or (d) any action against a potential
relief defendant or to set aside transfers, including any
future action against any person to whom such transfers were
made by or at the behest of Defendant Parker or MYF.
Defendants Parker and MYF do not consent to the use of this
Consent Order, or the Findings of Fact and Conclusions of Law
in this Consent Order, as the sole basis for any other
proceeding brought by the Commission, except for an action
against a relief defendant or to set aside transfers,
pursuant to the Fair Debt Collection Practices Act
("FDCPA"), 15U.S.C. §§ 1692 et
seq., or other statute, where such transfers were made
by or at the behest of Defendant Parker or MYF;
Agree to provide immediate notice to this Court and the CFTC
by certified mail, in the manner required by paragraph 102 of
this Consent Order, of any bankruptcy proceeding filed by, on
behalf of, or against them, whether inside or outside the
Agree that no provision of this Consent Order shall in any
way limit or impair the ability of any other person or entity
to seek any legal or equitable remedy against Defendants
Parker or MYF in any other proceeding.
FINDINGS AND CONCLUSIONS
Court, being fully advised in the premises, finds that there
is good cause for the entry of this Consent Order and that
there is no just reason for delay. The Court therefore
directs the entry of the following Findings of Fact,
Conclusions of Law, permanent injunction and equitable relief
pursuant to Section 6c of the Act, 7 U.S.C. § 13a-l
(2012), as set forth herein. The findings and conclusions in
this Consent Order are not binding on any other party to this
PARTIES AGREE AND THE COURT HEREBY FINDS:
Findings of Fact
to this Consent Order
Plaintiff Commodity Futures Trading Commission is an
independent federal regulatory agency that is charged by
Congress with administering and enforcing the Act, 7 U.S.C.
§§ 1-26 (2012), and the Regulations promulgated
thereunder, 17 C.F.R. §§1.1, et seq.
Defendant MakeYourFuture, LLC ("MYF") is a Utah
limited liability corporation with its principal place of
business in Lehi, Utah. MYF has never been registered with
the Commission in any capacity.
Defendant Kimball Parker is a natural person and resides in
Lehi, Utah. Parker is the owner and controlling person of
MYF. Parker has never been registered with the Commission in
to the Consent Order
Defendant Changes Worldwide LLC ("Changes
Worldwide") is a Florida limited liability corporation
with its principal place of business in Lakeland, Florida.
Changes Worldwide has never been registered with the
Commission in any capacity.
Defendant Changes Trading LLC ("Changes Trading")
is a Florida limited liability corporation with its principal
place of business in Lakeland, Florida. Changes Trading is a
wholly-owned subsidiary of Defendant Changes Worldwide.
Changes Trading has never been registered with the Commission
in any capacity.
Defendant Timothy Baggett is a natural person and resides in
Lakeland, Florida. Baggett is the owner and controlling
person of Changes Worldwide, and through Changes Worldwide is
the indirect owner of Changes Trading. Baggett is the
controlling person of Changes Trading. Baggett has never been
registered with the Commission in any capacity.
Changes Worldwide and Changes Trading (collectively,
"Changes") operated as a common enterprise during
all periods relevant to the Complaint.
Court entered a final judgment by default, permanent
injunction, civil monetary penalties, and other statutory and
equitable relief against Defendants Baggett, Changes
Worldwide, and Changes Trading on February 1, 2017. (Doc. 33)
Beginning in March 2014, Defendants Parker, MYF, Baggett,
Changes Worldwide, and Changes Trading (collectively,
"Defendants") offered to sell customers a system
for trading the e-mini S&P 500 futures contract
("ES") on the Chicago Mercantile Exchange
trading system consists of "signals" that
purportedly provide customers with "exact entrance and
exit points" for trades. Defendants advertised the
system as being "designed for both the new,
inexperienced trader as well as the seasoned
order to use the system, customers must download trading
software from a third-party software developer and open a
brokerage account. The signals generated by Defendants'
trading system "ride" on top of the third-party
trading software as an add-on. According to Defendants, the
signals "show you when to make the trades."
signals generated by Defendants' trading system are not
available to the general public. They are only available to
customers who purchase the system. The signals are sent to
customers' computers over the internet.
Defendants offer the trading system for a one time, up-front
payment which typically ranges from $1, 995 to $2, 495. In
order to continue receiving the signals, customers also have
to pay a monthly fee of $100.
Defendant Parker is the developer of the trading system sold
by Defendants. Before meeting Defendant Baggett, Parker sold
his trading system through a small handful of distributors,
and through MYF's website at www.lmyf.com.
Baggett's company, Changes Worldwide, was a multi-level
marketing ("MLM") company engaged in selling
various products, including vitamins, dietary supplements,
insurance, and vacations, through a network of affiliates.
Affiliates are independent contractors who work to promote a
product in return for commissions. They may promote the
product on the internet, or they may promote it at in-person
seminars, or they may simply try to sell a product to their
family or friends.
Parker and Baggett met at an MLM conference in Las Vegas in
late 2013. They discussed the possibility of using
Baggett's affiliate network to sell the trading system,
which promised Baggett a higher profit margin than vitamins
January 2014, Parker and Baggett entered into an arrangement
for Changes Worldwide to become the primary marketer and
distributor of Parker's trading system. Parker would
provide the trading system, materials for the company's
website, and customer support.
Baggett began marketing the trading system no later than
March 2014. Around that time, Baggett founded Changes Trading
to serve as the primary vehicle through which the trading
system would be marketed.
Changes Worldwide and Changes Trading marketed the trading
system via their websites, www.changesworldwide.net,
www.changestrading.com. Parker provided all trading
system-related content for the websites, subject to
Baggett's approval. Parker also continued to market his
system through MYF's website at www.lmyf.com,
which was separate from the Changes websites.
Defendants also marketed the trading system via sales
presentations. Some of these sales presentations occurred
in-person at meetings or conferences. Other presentations,
referred to as "webinars, " were broadcast over the
internet. Defendants also marketed the trading system using
Changes's network of more than 100 affiliates.
November 2014, Baggett ceased his marketing efforts with
respect to the trading system. Nonetheless, Baggett continued
to allow Parker to use the Changes websites, which were still
registered to and owned by Baggett, as well as the Changes
Trading name, to market the trading system.
and Verifiable Results"
Defendants marketed the trading system via their websites,
located at www.changesworldwide.net,
www.trading4change.com, and www.lmyf.com.
Defendants' websites contained numerous fraudulent
misrepresentations and omissions designed to mislead
customers and prospective customers into believing that the
trading system was profitable and effective.
websites claimed that Defendants' trading system has
"a documented and verifiable track record of unmatched
performance in trading futures contracts (commodities)."
On a page titled "Results, " Defendants invited
visitors to "click the monthly charts below to see an
expanded detailed view of actual results using the Changes
Trading System." 37. The monthly charts purported to
show returns of between 11% to 68% per month between January
and December 2014, and profits of between $2, 830 and $17,
037.50 per month on a $25, 000 trading account. The monthly
charts also purported to show the percentage of "winning
trades" generated by the system each month; these
percentages ranged from 88% to 93%.
Defendants made similar misrepresentations in eBooks that
they distributed to customers and prospective customers. In
the eBooks, Defendants claimed that:
Virtually every system recommended trade for over four years
has been documented and recorded and the performance of this
proprietary trading system is without equal in the industry.
Over 300% annual return has been documented through 2014 and
interested individuals can go to the archived records of CTS
[Changes Trading] and verify every trade.
According to the eBooks, "CTS shows subscribers and
clients every system indicated trade for the past four years,
with percentages of success ranging from 83% to 93%
Defendants made similar misrepresentations during
presentations to customers and prospective customers. In
these presentations, Defendants claimed falsely that,
"In our first 50 months, since ...