If the world is left to spin its own stories, people will fall back to the age-old tactic of offering “miracle cures” for whatever problem they think people have. As Silver Star FX has shown us, this is still what the world would do if regulating bodies like the Commodity Futures Trading Commission (CFTC) didn’t exist.
A Hard Crackdown
Both the Silver Star Live Software LLC and Silver Star Live were met with a hefty fine of $75 000 due to the marketing of their FX trading bot. Candace Ross-Mahmoud and Hassan Mahmoud were ordered to pay the fines. While both were co-owners, Candace was the President of the company while Hassan served as the Executive Vice President.
The charges that prompted the fining to begin with, explain a time between July 2018 and March 2019. Within the timeframe, both parties improperly marketed their FX day-trading system to retail investors. They intentionally misrepresented their trading bot’s effectiveness in a bid to push sales up. The defendants sold their software for $199 a month at first, before scaling down to $145 a month. This money was paid to make use of an auto trading bot and personalized forms of trading advice.
The False Words
The claims themselves paint their trading bot out as something far more effective than it actually would be. They claimed that the system aimed to give you a $250-$600 profit every month with only a deposit as meager as $300. To add fuel to the fire, they claimed that the algorithms the software makes use of, have already given a definitively proven track record of these reported profits.
The company didn’t even bother to give a proper disclaimer that the CFTC mandates in its regulations. This disclaimer needs to state that the results of this estimation that Silver Star is providing the investors are based on either hypothetical or simulated performance results. As a result, the estimates have inherent limitations on them.
Further insult to injury would be the false representations that candace and Hassan did on their own corporate bios on SIlvestar Live. Hassan Mahmoud credited himself as some sort of “international Omnipreneur & Keynote Speaker” that he claims is highly sought after in the millennial community. He holds a lofty claim of 250 million-plus in sales in as little as four years. These claims end with him alleging to have helped several business owners expand their names and brands.
Setting the Precedent
The CFTC considers their move as something that will set a precedent for other enterprises, should they fail in complying with the CFTC’s requirements. The regulator has expressed its concerns over the auto trading bots that are increasingly being sold across the internet. The CFTC said that there were more and more websites falsely promoting these products and similar advisory services and that investors need to be careful about these lofty claims.