05 November 2019, AtoZMarkets – Both Silver Star Live Software LLC and Silver Star Live have been fined $ 75,000 for marketing their FX trading robot. Candace Ross-Mahmoud and Hassan Mahmoud were sentenced to pay the fines. While both were co-owners, Candace was president of the company, and Hassan was executive vice president. Earlier, CFTC files a lawsuit against Nevada-based circle society.
Reason for the Fine
The charges that led to the imposition of the fine explain the period between July 2018 and March 2019. During this period, both parties improperly marketed their day trading system on the foreign exchange market with retail investors. They intentionally distorted the efficiency of their trading robot to increase sales. The defendants first sold their software for $ 199 a month, before reducing it to $ 145 a month. They paid this money to use a car trading robot and custom forms of trading advice.
The claims themselves describe their trading robot as something much more useful than it actually would be. They claimed the system would give you a profit of $ 250 to $ 600 a month with only a deposit as meager as $ 300. To add fuel to the fire, they claimed that the algorithms used by the software have already proven themselves concerning reported profits. In early October, CFTC also alleges $7 million Bitcoin fraud perpetrated.
The company has not even bothered to issue an appropriate disclaimer that the CFTC requires in its regulations. The results of this estimate that Silver Star provides to investors are based on simulated/hypothetical performance results. As a result, views have inherent limitations.
Moreover, Candace and Hassan made about their corporate biographies on SIlvestar Live. Hassan Mahmoud credits himself with being a kind of international omnipreneur and keynote speaker, who, he says, is highly sought after in the millennium community. He holds a high claim of more than $ 250 million in sales in as little as four years. These claims end with an allegation that he has helped several business owners expand their name and brand.
Read More: NY Court orders illegal Veritaseum ICO to pay back $8 million
CFTC Expressed Concerns About Auto Trading Robots
The CFTC considers its move as a precedent for other companies if they do not comply with the requirements of the CFTC. Besides, CFTC is optimistic about Ethereum Futures contracts. Furthermore, the regulator has expressed concerns about auto trading robots. People are increasingly buying that on the Internet. The CFTC said there were more and more websites that were falsely promoting these products and similar advisory services and that investors should be cautious about these high claims.
Think we missed something? Let us know in the comments section below.