Aggregated News From Investment Management Regulators

CFTC Charges Florida Man for Attempting to Fraudulently Profit From COVID-19


Please complete the required fields.

Washington, D.C. — The Commodity Futures Trading Commission today announced it has filed a complaint in the U.S. District Court for the Western District of Texas against James Frederick Walsh of Boca Raton, Florida, charging him with fraudulent solicitation and failure to register with the CFTC. Walsh’s fraudulent solicitations include falsely claiming to generate increased profits as a result of the COVID-19 pandemic. This is the first enforcement action brought by the CFTC alleging misconduct tied directly to the pandemic. The CFTC has also brought additional cases against entities and individuals whose frauds were ongoing during the pandemic. [See CFTC Press Release Nos. 8180-20, 8179-20, 8164-20].

“We continue to actively monitor our markets to seek out bad actors using the COVID-19 crisis as a basis for investment scams,” said CFTC Director of Enforcement James McDonald. “There is never an appropriate time to prey on innocent people’s fears, and we will aggressively pursue those who do.”

The complaint alleges that from at least September 2019 to the present, Walsh fraudulently solicited members of the public for the purported purpose of trading foreign currency (forex) on their behalves. Using primarily social-media platforms, Walsh fraudulently marketed himself to the public as a highly successfully forex trader who earned “average monthly returns of 8% – 11%” or “a flat 3% guaranteed profit each month” for his clients. To achieve these fictitious results, Walsh falsely claimed to have access to “legal, inside information” about the direction in which forex markets will move. As alleged, Walsh has no U.S.-based forex trading accounts.

The complaint further alleges that, after he received a cease and desist letter from the Texas State Securities Board related to his fraudulent solicitations, 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 CFTC thanks the Texas State Securities Board for its assistance in this matter.

The Division of Enforcement staff members responsible for this case are Tobias Fischer, George Malas, Timothy M. Mulreany, and Paul G. Hayeck.

* * * * * * *

CFTC’s Forex Fraud Advisory

The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Forex Trading Fraud Advisory, to help customers identify these scams.

The CFTC also strongly urges the public to verify a company’s registration with the Commission before committing funds. If unregistered, a customer should be wary of providing funds to that entity. A company’s registration status can be found using NFA BASIC.

Customers and other individuals can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.

Source link

Regulator Information

Abbreviation: CFTC
Jurisdiction: USA

Recent Articles

SEC Awards $20 Million to Whistleblower

Washington D.C., Nov.

Update on the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 — GFSC

In July 2022, the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (the “Law”) was approved by the States of Guernsey, the States of Alderney and the Chief Pleas of Sark.

UK and Singapore deepen collaboration in FinTech and strengthen financial cooperation

The United Kingdom (UK) and Singapore held the 7th UK-Singapore Financial Dialogue in Singapore today. Both countries renewed their commitment to deepening the UK-Singapore...

Consultation on ‘six directorship’ exemption for directors — GFSC

The Policy & Resources Committee has today published a Consultation Paper seeking views on a proposed change to the requirements which affect some individuals acting as company directors, by way of b

The AMF is supplementing its policy on liquidity management tools

New disclosure obligations This update provides for new obligations if the regulatory documentation of the CIU does not include a mechanism to cap redemption requests (gates) and/or a mechanism to of

Get the latest from Regulatory.News in your inbox!