CFTC seeks more info about Simple Wealth suspected of FX and binary options fraud

Maria Nikolova

The US regulator wants Cody M. Wilson, the individual behind Simple Wealth, to comply with administrative subpoena.

The United States Commodity Futures Trading Commission (CFTC) has turned to Court in an attempt to secure more information about the activities of Simple Wealth amid suspicions that this entity is involved in Forex and binary options fraud.

On November 6, 2019, the CFTC filed a Motion to Compel with the Columbia District Court, requesting that Cody M. Wilson, the individual behind Simple Wealth, comply with a subpoena the regulator issued about a year ago.

On November 27, 2018, the CFTC through its Division of Enforcement, issued a subpoena to Cody M. Wilson. The Division issued the Subpoena based on information that suggested that Mr. Wilson may have misappropriated customer funds, or fraudulently solicited customers to pay (1) for training and trading tips regarding Forex or (2) for Mr. Wilson to trade binary options and Forex on customers’ behalves.

Mr. Wilson solicited customers through a variety of ventures, including an entity called Simple Wealth LLC.

Information obtained by the CFTC indicates that Mr. Wilson and his associates may have maintained a number of social media accounts to solicit customers, including Simple Wealth, Simple Wealth Academy, Team Unemployable, Young Millionaires and Onthehouse. Mr. Wilson and the Cody Wilson Entities offered products and services that went by a variety of names, including Simple Wallet, Simple Wealth Auto Trading, Greener Pastures, and the Simple Wealth Signal Group.

According to complaints received by the Commission, prospective customers were told that investing with Mr. Wilson or the Cody Wilson Entities would yield a significant payout in a short period time.

Certain individuals told the CFTC that they were unable to make withdrawals from their accounts with Mr. Wilson and Simple Wealth upon request. The investigative team obtained information suggesting that at some point in 2018, Mr. Wilson told customers that his trading accounts had been hacked, that all of the investors’ money had been stolen, and that neither he nor Simple Wealth would be able to return the individuals’ original investment or pay the returns the individuals had been promised.

In February 2019, Mr. Wilson produced a handful of documents in response to the Subpoena, but he has not responded to a majority of the Subpoena’s requests, and his limited response to the other requests appears entirely inadequate.

Now, the CFTC requests that the Court issue an order requiring Respondent Cody M. Wilson to show cause why he should not be compelled to comply with the administrative subpoena issued by the Commission on November 27, 2018. Should Mr. Wilson not show good cause, the Commission requests that the Court issue a subsequent order requiring Mr. Wilson to comply immediately in all respects with the Subpoena, including by

  • (a) producing to the Commission all documents specified in Schedule A to the Subpoena that are in his possession, custody, or control, and
  • (b) personally appearing before the Commission at its headquarters in Washington, D.C. to provide testimony.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<