CFTC Fines Silver Star FX and Trading Bot Creator with $15.6 Million
The Commodity Futures Trading Commission (CFTC) announced on Wednesday that it has received the court’s permission to make two fraudulent forex trading software companies and their co-owner pay more than $15.6 million for fraud.
The motion was filed against Silver Star Live (SSL) and Silver Star Live Software LLC (SSLS), which were based in New Mexico and Florida, and David Wayne Mayer, aka Quicksilver. Both the entities and the individual solicited funds in connection with forex transactions, committing Commodity Trading Advisor (CTA) fraud, and also violated multiple other CFTC regulations.
The court order now requires SSLS and Mayer to jointly pay restitution of more than $3.7 million, while SSL has to pay $198,143. Additionally, the regulatory agency imposed a civil penalty of almost $9.8 million each on both the entities and Mayer has to pay a penalty of $1.34 million.
Further, all of them are permanently enjoined from engaging in conduct that violates the commission’s rules, registering, and trading on any CFTC-regulated entities.
‘Double Your Money’ Software
The case against the parties involves charges that, from July 2018 to March 2019, they fraudulently solicited retail investors to purchase their FX day-trading system by misrepresenting the software’s effectiveness. The software was sold for $199 and then $145 a month providing users with access to the auto trading bot and other personalized trading advice.
Specifically, the claims to bolster the credibility of their system included that the system aims for a $250-600 a month profit for as little as $300 deposit and falsely claimed their software relies on algorithms with a proven track record to make these purported profits.
Mayers, who created the software, did not disclose that he never used it in a live setting and did not even register as an associated person of a CTA.
The commodities regulator first fined the owners of the two fraudulent companies in 2019 and then brought charges against the companies in 2020.
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