Disgraced MLM veteran Holton Buggs is shamelessly challenging the CFTC’s request for a Traders Domain preliminary injunction.

Buggs, who is alleged to have misappropriated millions of dollars through Traders Domain, is the only defendant challenging proceedings.

As per the CFTC, Buggs personally recruited “at least 517” investors, who together invested “no less than $54 million” into The Traders Domain.

Buggs recruited customers through his existing multi-level-marketing (“MLM”) businesses, in person events that he attended throughout the United States, including in Miami, Florida and San Diego, California, and by soliciting individuals with whom he had previous business dealings, including a Buggs customer in Sarasota, Florida.

Buggs also fraudulently misappropriated funds, by accepting some customer funds into bank accounts that he controlled and using those funds to pay for personal expenditures, including a Lamborghini and a condominium in Florida.

Additionally, Buggs misappropriated customer funds by taking commissions of 40-50% of purported profits on trading that he knew or should have known was fabricated.

A
leaked database
shows Buggs’ The Traders Domain balance as of June 2022 was over $125 million.

A December 2nd Initial Status Report from The Traders Domain Receiver details dealing with Buggs thus far.

To date, Defendant Buggs has not asserted the Fifth Amendment privilege with respect to his obligations under the SRO, but has refused to provide any information to the Receiver, other than allowing the Receiver to inspect one of his houses in Houston, Texas.

The Receiver attempted to take an asset deposition of Defendant Buggs on November 14, 2024, but neither Buggs nor his counsel appeared.

The Receiver is attempting to once again take an asset deposition of Buggs on December 4, 2024.

It’s unclear but unlikely that Buggs turned up for the second scheduled asset deposition either.

On November 7, 2024, the Receiver’s attorneys inspected one of the houses owned by Defendant Buggs located at [address withheld], Houston, Texas 77082.

The Receiver’s attorneys were accompanied by Defendant Buggs and his counsel.

The house contained expensive furniture; designer clothes, purses, and shoes; a large fish tank and bowling alley.

The Receiver’s attorneys took photographs and video of the house. According to the Receiver’s investigation, and without verification or assistance from Defendant Buggs or his counsel, the Receiver believes Buggs also owns houses at [address withheld] Houston, Texas 77082 and [address withheld], Houston, Texas 77077.

While at the Noble Lakes property in Houston, the Receiver’s attorneys observed a 2021 Rolls Royce that according to the Texas Department of Motor Vehicles had a sales price of $639,000; and a 2020 Tesla that according to the Texas Department of Motor Vehicles had a sales price of $124,770.

Buggs not cooperating with authorities is nothing new. As per the CFTC;

On July 20, 2023, the Commi

🤖 Quick Answer

What is Holton Buggs' alleged role in the Traders Domain fraud case?
According to the CFTC, Holton Buggs is a disgraced MLM veteran alleged to have personally recruited at least 517 investors who collectively invested no less than $54 million into The Traders Domain. He reportedly solicited participants through existing multi-level-marketing businesses, in-person events across the United States, and prior business contacts. Buggs is the sole defendant challenging the CFTC's preliminary injunction and stands accused of fraudulently misappropriating investor funds.

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