The Commodity Futures Trading Commission today levied an action against Tradewale LLC, its UK associated managed fund and its principal, Valdas Dapkus, over fraudulent offerings related to a forex scheme.
The defendants told victims that they would use pool funds to trade currencies, according to the complaint, filed in the U.S. District Court of New Jersey.
Through its website, tradewale.com, as well as various social media platforms, Tradewale raked in more than $700,000 by misrepresenting their software’s effectiveness.
The claims to bolster the credibility of their “unique trading system” included that it relies on artificial intelligence algorithms with a proven track record to trade forex. They also touted returns of 4% – 11% a month and average yearly returns of over 55% with “minimal risk.”
Furthermore, in their solicitation materials, the defendants never included the hypothetical disclaimer required by CFTC regulations, which plainly states, “the results are based on simulated or hypothetical performance results that have certain inherent limitations.”
Tradewale defrauded investors through a variety of false advertising campaigns. In these campaigns, the marketers promoted fake success stories that encouraged the users who viewed them to sign up for their platform. The fake account statements also lured victims into believing their investments were paying off.
“Although Tradewale’s solicitation materials claimed that accounts could be “easily…