CFTC Hits FuturesFX and its Canadian Proprietor with $1.7M Fine
- The CFTC charged the defendants with pitching a system that includes a live trading room, educational videos and online support
Canadian resident Simon Jousef and his business FuturesFX were met with a hefty fine of $1.7 million due to the marketing of their trading and teaching system to investors in the US and elsewhere.
The Commodity Futures Trading Commission (CFTC) charged the defendants back in November with pitching FuturesFX app which they claimed it includes a “live” 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 and commodity futures Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term room, educational videos and online support.
The settlement involves charges that, from July 2014 to January 2016, Jousef fraudulently solicited retail investors to purchase his FX day-trading system by misrepresenting the software’s effectiveness.
Defendants sold the ‘double your money’ software for up to $9,000 to provide users with access to the auto trading bot and other personalized trading advice, raking in a total of $1.3 million in subscription fees from more than 300 members.
Trying to scam the NFA
Jousef and FuturesFX are also charged with acting as a commodity trading advisor and an associated person without obtaining the required registrations. Furthermore, the defendants didn’t provide the required disclosures concerning client testimonials on the FuturesFX website, nor the hypothetical disclaimer required by CFTC regulations, which plainly states, “the results are based on simulated or hypothetical performance results that have certain inherent limitations.”
The Canadian firm and its proprietor have also been charged by the CFTC with making false statements to the National Futures Association (NFA) when submitting annual CTA registration updates concerning FuturesFX’s predecessor company.
In addition to false representations, the commission contends that Jousef personally claimed he has experience for several years in actual trading and investing in futures when in fact he was not.
“The consent order requires the defendants to pay jointly and severally restitution of $1.3 million to defrauded members and a $450,000 civil monetary penalty. The order also imposes certain permanent trading and registration bans against all defendants and a permanent injunction prohibiting them from further violating provisions of the Commodity Exchange Act and CFTC regulations, as charged,” the agency said.
The case highlights regulators’ concerns about the risks posed by auto trading systems sold on the internet, which the watchdog says it has seen an increase in websites that fraudulently promote such products and its related advisory services.
Canadian resident Simon Jousef and his business FuturesFX were met with a hefty fine of $1.7 million due to the marketing of their trading and teaching system to investors in the US and elsewhere.
The Commodity Futures Trading Commission (CFTC) charged the defendants back in November with pitching FuturesFX app which they claimed it includes a “live” 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 and commodity futures Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term room, educational videos and online support.
The settlement involves charges that, from July 2014 to January 2016, Jousef fraudulently solicited retail investors to purchase his FX day-trading system by misrepresenting the software’s effectiveness.
Defendants sold the ‘double your money’ software for up to $9,000 to provide users with access to the auto trading bot and other personalized trading advice, raking in a total of $1.3 million in subscription fees from more than 300 members.
Trying to scam the NFA
Jousef and FuturesFX are also charged with acting as a commodity trading advisor and an associated person without obtaining the required registrations. Furthermore, the defendants didn’t provide the required disclosures concerning client testimonials on the FuturesFX website, nor the hypothetical disclaimer required by CFTC regulations, which plainly states, “the results are based on simulated or hypothetical performance results that have certain inherent limitations.”
The Canadian firm and its proprietor have also been charged by the CFTC with making false statements to the National Futures Association (NFA) when submitting annual CTA registration updates concerning FuturesFX’s predecessor company.
In addition to false representations, the commission contends that Jousef personally claimed he has experience for several years in actual trading and investing in futures when in fact he was not.
“The consent order requires the defendants to pay jointly and severally restitution of $1.3 million to defrauded members and a $450,000 civil monetary penalty. The order also imposes certain permanent trading and registration bans against all defendants and a permanent injunction prohibiting them from further violating provisions of the Commodity Exchange Act and CFTC regulations, as charged,” the agency said.
The case highlights regulators’ concerns about the risks posed by auto trading systems sold on the internet, which the watchdog says it has seen an increase in websites that fraudulently promote such products and its related advisory services.