CFTC Fines Silver Star FX and Trading Bot Creator with $15.6 Million

The Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) 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 Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term transactions, committing Commodity Trading Advisor (CTA) fraud and 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.