The U.S. Commodity Futures Trading Commission (CFTC) has charged the founders of SchoolofTrade.com (SOT) with fraudulently marketing futures trading systems.
According to the complaint, Joseph Dufresne, Megan Renkow and their company United Business Servicing. Inc., have been lying about the performance metrics of their trading systems and the nature of the activity in the SOT’s live trading room, since 2011:
“Defendants sold at least 877 memberships in SoT and took in more than $2.7 million during the period charged in the CFTC’s Complaint.”The CFTC alleges that Dufresne was falsely portrayed by SOT as a trading professional with stellar credentials and performance history, “in fact, Dufresne has little experience, has never been professionally recognized, and has never been a profitable trader,” states the press release.
The financial watchdog also charged SOT with failing to display the required disclaimers on solicitation materials per CFTC Regulations, which require financial advisors to state “their results are based on simulated or hypothetical performance results and do not represent actual trading.”
The agency says that Forex and Commodity Pool Fraud have been on the rise. The Fraud Advisories section on the CFTC site is dedicated to educating investors on spotting potential scams.