Individual behind suspected FX scam Simple Wealth refuses to comply with CFTC subpoena

Maria Nikolova

The US regulator still has no access to the documents it seeks from Cody Wilson, the individual behind the allegedly fraudulent Forex and binary options scheme.

A couple of months after 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 the entity is involved in Forex and binary options fraud, the US regulator says there has been no progress in securing the requested information.

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.

The CFTC issued the Subpoena based on information that suggested that Wilson may have misappropriated customer funds, or fraudulently solicited customers to pay (1) for training and trading tips regarding Forex or (2) for 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, 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.

On January 15, 2020, the Commission informed the Columbia District Court that there have been no new developments with respect to Wilson’s non-compliance with the Subpoena. Wilson has not reached out to the CFTC to cure his non-compliance, or reschedule his investigative testimony, nor has Wilson produced any additional documents in response to the Subpoena.

In an ongoing effort to contact Wilson, CFTC staff has also been in touch with Federal authorities in Idaho. The information available to the Federal authorities in Idaho indicates that Wilson still resides in Idaho, albeit at a different location than the one at which he was served with the Subpoena.

Read this next

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

Institutional FX

Eurex reports mixed volumes for November 2022

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

<