Please remember that If it Sounds Too Good to Be True, it Probably Is – CFTC case study

According to the Court Orders (please find attached), the Court finds that the Defendants engaged in a systematic pattern of materially false statements and omissions in connection with the marketing of SchoolofTrade.com (SoT) trading strategies and systems.

Specifically, the Court finds that Defendants: 1) touted the profitability of SoT’s trading strategies and systems and claimed hundreds of thousands of trading profits earned every year when, in fact, none of Defendants’ accounts has ever been profitable; 2) falsely represented to customers and prospective customers that the Defendant was a successful professional trader with years of experience and numerous awards when, in fact, the Defendant has little experience, has never been professionally recognized, and has never been a profitable trader; and 3) purported to make profitable trades in live accounts in real time in SoT’s “Live Trade Room” when, in fact, none of the trades called or profits claimed to have been made in the “Live Trade Room” can be found in any of Defendants’ accounts. Additionally, the Court found that Defendants failed to prominently display in their various solicitation materials certain disclosure statements required under CFTC Regulations concerning simulated or hypothetical trading results and client testimonials.

It is advisable to use register financial adviser, if things goes wrong, he/she may have professional liability insurance, and you may be able to get back your money.

In SchoolofTrade.com case, it is not clear how much money the victims will get back (if any), since the wrongdoers may not have sufficient funds or assets.