CFTC Charges Owners of FX Auto-Trading App with Fraud

The US derivatives regulator hit Silver Star FX, Silver Star Live Software LLC (SSLS) and its co-owner David Wayne Mayer with fraud charges and registration lapses for promoting passive returns through their forex trading bot.

The two firms, which were registered in New Mexico and Florida, hit the USA market with forex auto-trading software. The third defendant, David Wayne Mayer – AKA “Quicksilver,” is founder and COO. The company website claims Mayer had worked for the second largest hedge fund in New York, Platinum Partners, where he was responsible for trading accounts of hundreds of millions in the futures market over the course of 6 years.

Even it were true, the defunct hedge fund firm was liquidated by authorities and all of its operatives were hit by conspiracy and securities fraud charges. Prosecutors said Platinum operated like a Ponzi scheme that bilked investors out of millions of dollars.

The CFTC’s compliant involves charges that, from July 2018 to March 2019, the defendants fraudulently solicited retail investors to purchase their FX day-trading system by misrepresenting the software’s effectiveness. Defendants sold the ‘double your money’ software for $199 and then $145 a month to provide users with access to the auto trading bot and other personalized trading advice.

Specifically, the claims to bolster the credibility of their system included that the system aims for $250-600 a month profit for as little as $300 deposit and falsely calmed their software relies on algorithms with a proven track record to make these purported profits.

Co-owners fined by CFTC in 2019

“Mayer used the pseudonym “Quicksilver” to act as an unregistered associated person and to solicit clients through videos posted online, on social media, and at in-person marketing events. The solicitations contained material misrepresentations and omissions regarding Mayer’s qualifications and trading experience,” the agency explains.

Earlier last year, the CFTC fined Silver Star FX and two co-owners, who were identified as Candace Ross-Mahmoud (President) and Hassan Mahmoud (Executive Vice President), with penalties totaling $75,000.

In addition to the false representations, in their respective Silverstar Live corporate bios, Hassan Mahmoud was credited as “an international Omnipreneur & Keynote Speaker who is highly sought out by the millennial community to work with and to work on passion projects all over the world.” He also claims to have done over 250 million in sales over the past four years while helping multiple business owners grow their names and brands.

(Photo: flickr)

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