CFTC Slaps FX ‘Master Trader’ with Fraud Charges

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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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 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 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.”