CFTC Slaps FX ‘Master Trader’ with Fraud Charges

Wednesday, 08/07/2020 | 11:40 GMT by Arnab Shome
  • He also received a cease and desist order from Texas authorities.
CFTC Slaps FX ‘Master Trader’ with Fraud Charges
Finance Magnates

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.

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.”

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.

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.”

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6613 Articles
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