CFTC asks Nevada court to issue Default Judgement against TradeMasters

Maria Nikolova

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.

Read this next

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

<