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

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<