The US Commodity Futures Trading Commission (CFTC) has brought fraud charges against James Frederick Walsh, a self-proclaimed FX “master trader”, for soliciting the public for trading off-exchange leveraged retail FX on their behalves.
According to the court documents dated July 7, Walsh was active since September last year and promoted his trading services via his YouTube channel, Craigslist, and email.
Insane claims without no details
The legal complaint highlighted that he was marketing himself as a highly successful forex trader and generated for his clients an “average monthly returns of 8% -11%” or “a flat 3% guaranteed profit each month.”
“To achieve these fictitious results, Walsh falsely claimed to have access to “legal, inside information” about the direction in which forex markets will move,” the CFTC alleged.
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On April 3, the Texas State Securities Board issued an emergency cease and desist notice against Walsh for targeting Texans during the COVID-19 crisis with a “recession-proof” foreign exchange investment solicitation program.
“Walsh falsely represented that he was earning even greater trading profits now that the COVID-19 pandemic had impacted the financial markets, claiming that ‘the returns in forex continue to grow as the rest of the financial world continues to suffer’,” the court document added.
The CFTC alleged that Walsh falsely describing his trading experience, trading skills, and trading results; falsely describing his trading experience, trading skills, and trading results; and did not reveal that was not registered with the Commission to act as a commodity trading advisor (“CTA”), and therefore was operating an unlawful business venture.
He also did not reveal to his existing and prospective clients about the order received from the Texas regulator.
“[…] the Commission brings this action to enjoin Walsh’s unlawful acts and practices and to compel his compliance with the CEA and the Regulations,” the court documents added. “In addition, the Commission seeks civil monetary penalties and remedial ancillary relief, including, but not limited to, trading and registration bans, restitution, disgorgement, rescission, an accounting, pre- and post-judgment interest, and such other relief as the Court deems necessary and appropriate.”