CFTC asks Nevada court to issue Default Judgement against TradeMasters
TradeMasters and its owner Mirko Schacke are alleged to have made misrepresentations and to have attempted to deceive members of the public to buy the TradeMasters automated trading software.
The United States Commodity Futures Trading Commission (CFTC) had filed a Motion with the Nevada District Court, Las Vegas division, requesting that a Default Judgement is issued against TradeMasters, USA, LLC in a civil legal action the US regulators launched against the company and its owner Mirko Schacke back in August 2016.
Mirko Schacke and TradeMasters are accused of violations of the Commodity Exchange Act and a number of Commission Regulations, including a failure to register as a commodity trading advisor.
The defendants are alleged to have illegally solicited funds from at least 36 individuals who were allegedly defrauded to have paid money for TradeMasters software and “coaching” services starting in June 2013. The CFTC has noted numerous material representations made on the website of TradeMasters, which is currently not active.
The misleading claims made by TradeMasters include:
- that the TradeMasters software was fully automated;
- that hypothetical trading profits were actual trading profits;
- that TradeMasters’ “coaches” have more than 2 decades of active day trading experience when Schacke was the only “coach” and had no futures trading experience prior to marketing the TradeMasters software in June 2013;
- that a customer gained more than 500% in 2014;
- that a customer gained more than 40% “in only 10 weeks”.
In its Motion for Default Judgement, filed with the Court on September 1, 2017, the CFTC seeks that the defendants are permanently restrained, enjoined and prohibited from engaging in further violations of the Commission Regulations and the CEA. This means that the defendants are prohibited, inter alia, from cheating or defrauding, or attempting to cheat or defraud, as well as from engaging in any trading activity, registering with the Commission, and using any Internet website (including Facebook and YouTube) to advertise, market, promote or offer for sale any transactions involving commodity interests and related services, including, but not limited to, any automated commodity futures trading software.
TradeMasters should also pay disgorgement of $168,626, as well as a a civil monetary penalty in the amount of $505,878. To effect payments of the Disgorgement Obligation and the distribution of any disgorgement payments to Defendant’s customers, the Court is requested to appoint the National Futures Association as Monitor.
The case is captioned United States Commodity Futures Trading Commission v. Trademasters, USA LLC et al (2:16-cv-01938). The responses to the CFTC Motion are due by September 15, 2017.