FRAUDSTER TRADED OPTIONS WITH DAD, LOST $800K FROM INVESTORS!

SEC v. Leena Jaitley — U.S. Securities and Exchange Commission Litigation Release No. 26212, dated January 7, 2025.

Leena Jaitley operated two websites, Managed Options Trading and Options by Pros, falsely claiming to use experienced traders and a successful proprietary method to trade options for investors. In reality, she acted alone or with her father, and her trading led at least fifteen individuals to lose over $800,000. The SEC secured a final judgment ordering Jaitley to disgorge gains, pay prejudgment interest, and a civil penalty.

In Plain English

Imagine you hired someone to manage your money, and they promised they were super experienced and had a secret winning strategy. But, they were actually just fumbling around, and you lost a lot of your money. That's what happened here. The SEC stepped in to stop the person and get some money back for the people who lost it.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Creating Fake Trading Websites Leena Jaitley created and operated two websites, Managed Options Trading and Options by Pros, claiming they offered profitable stock options trading services for clients.
2. False Promises to Investors To attract clients, Jaitley falsely claimed the websites used experienced traders in New York with a unique, proprietary trading system that had a history of success.
3. Fabricating Testimonials Jaitley also created and published fake testimonials and positive reviews on the websites to convince potential investors of the service's legitimacy and success.
4. Operating Alone from Home In reality, Jaitley conducted all the trading herself from her home in Austin, Texas, sometimes with the assistance of her elderly father, not from New York as claimed.
5. High-Risk, Unprofitable Trading Despite initial successes for some clients, Jaitley's trading strategy frequently resulted in the loss of all or most of the clients' invested principal through volatile and high-risk trades.
6. Blaming Clients for Losses When clients complained about trading losses, Jaitley, using an alias, falsely denied responsibility and blamed the clients or others for her own losing trades.
7. Significant Investor Losses Jaitley's fraudulent scheme caused at least fifteen individuals to lose approximately $808,000 in principal, and a total of about $1.48 million including fees.

The Enforcement Action

On December 12, 2024, the U.S. District Court for the Western District of Texas entered a final judgment against Leena Jaitley, who operated fraudulent websites Managed Options Trading and Options by Pros. The SEC's complaint, filed September 20, 2021, charged Jaitley with defrauding investors by falsely claiming experienced traders and a successful proprietary methodology. The court found Jaitley violated antifraud provisions and ordered her permanently enjoined from future violations. Jaitley was ordered to disgorge $672,833 in ill-gotten gains, pay $158,835 in prejudgment interest, and pay a civil penalty of $672,833.

Named in this action: Leena Jaitley.

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