CFTC fines Silver Star FX and owner $ 15.6 million
Georgia resident and two missing companies to pay $ 15.6 million to settle CFTC allegations that they operated illegal currency trading programs, provided fraudulent statements and acted as product pool operators basic unregistered.
The Commodity Futures Trading Commission has charged Silver Star FX, Silver Star Live Software LLC (SSLS) and its co-owner David Wayne Mayer with charges of fraud and registration cancellations for promoting passive returns through their forex trading bot.
The U.S. securities regulator has provided the following breakdown for the hefty fines:
“The order requires SSLS and Mayer to pay $ 3,712,035.93 in restitution jointly and severally and SSL to pay $ 198,143.03 in restitution. The order further imposes $ 9,798,107.79 in civil monetary penalties on SSLS; $ 9,798,107.79 over SSL; and $ 1,338,000 on Mayer. “
Along with the civil sanction, the defendants also agreed to a permanent ban from trading on regulated markets and registration with the CFTC, according to a proposed consent order.
The two companies, which were registered in New Mexico and Florida, sold their trading and education system to investors in the United States and elsewhere. The third defendant, David Wayne Mayer – aka “Quicksilver”, is the founder and COO.
Mayer claimed he worked for New York’s second-largest hedge fund, Platinum Partners, where he was responsible for trading hundreds of millions of accounts in the futures market for the past 6 years.
Even if it was true, Platinum Partners was liquidated by authorities and all of its agents were charged with conspiracy and securities fraud. Prosecutors said the defunct hedge fund was operating as a Ponzi scheme that cheated millions of dollars from investors.
The CFTC’s complaint also involves accusations that, from July 2018 to March 2019, the defendants fraudulently solicited retail investors to purchase their daily FX trading system by distorting the effectiveness of the software.
The defendants sold the “double your money” software for $ 199, then $ 145 per month to provide users with access to the auto trading bot and other personalized trading tips.
Claims aimed at boosting the credibility of their system included that it generated a profit of $ 250-600 per month for a deposit of just $ 300. Moreover, they falsely claimed that their software relies on proven algorithms to achieve these purported benefits.
In another case, the CFTC fined Silver Star FX and two co-owners, identified as Candace Ross-Mahmoud and Hassan Mahmoud, with fines totaling $ 75,000. In their respective Silverstar Live company biographies, Hassan Mahmoud has been credited as “an international entrepreneur and keynote speaker who is highly sought after by the millennial community to work with and to work on passionate projects all over the world”. He also claims to have made over $ 250 million in sales while helping several business owners develop their names and brands.