On 7 January 2025, the United States Securities and Exchange Commission (US SEC) published the Litigation release. On 12 December 2024, the United States District Court for the Western District of Texas issued a final judgment against Leena Jaitley, a former resident of Austin, Texas, for her role in defrauding investors through two fraudulent websites, Managed Options Trading and Options by Pros. This ruling followed an investigation and litigation conducted by US SEC, which uncovered a scheme that caused financial harm to unsuspecting investors.
Leena Jaitley operated her fraudulent websites from 2018, falsely claiming that they employed skilled New York-based traders using a proprietary trading methodology with a successful track record. Instead, Leena Jaitley worked alone from her Austin home, occasionally involving her father, who lacked any professional trading qualifications. The US SEC’s investigation revealed that Leena Jaitley’s actions led to at least 15 investors losing more than US$800,000 in principal through high-risk, unprofitable trades, with total losses, including fees, exceeding US$1.4 million.
The US SEC filed its initial complaint against Leena Jaitley on 20 September 2021, outlining her misrepresentations and detailing how she fabricated testimonials and misled clients with guarantees of extraordinary profits. On 3 January 2024, the court ruled in favour of the US SEC’s motion for summary judgment, finding that Jaitley had violated multiple anti-fraud provisions of the US Securities Act of 1933, the US Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. Nearly a year later, on 12 December 2024, the final judgment permanently enjoined Jaitley from future violations of securities laws, ordered her to disgorge $672,833 in ill-gotten gains plus $158,835 in prejudgment interest, and pay an equivalent amount in civil penalties.
Leena Jaitley’s fraudulent scheme began in 2018, with her deceptive websites promising clients large profits from options trading. Over the next three years, she solicited investments through false claims and misrepresentations, while clients suffered devastating financial losses. The US SEC intervened, filing its lawsuit in September 2021 to hold Jaitley accountable. On 3 January 2024, 833 days after the complaint was filed, the court found her guilty of violating anti-fraud provisions. This legal battle culminated 344 days later, in December 2024, with the court’s final judgment.
By permanently banning Leena Jaitley from participating in activities that violate US securities laws and imposing hefty financial penalties, the decision shows the consequences of abusing public trust. The US SEC investigation and prosecution was led by Christian Ascunce, Greg Hillson, Charlie Divine, and Zachary Avallone.
(Source: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26212)
