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A private trader fined a million dollar fine by the CFTC
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A private trader fined a million dollar fine by the CFTC

created Natalia BojkoApril 2 2019

A few days ago Commodity Futures Trading Commission (CFTC) issued a statement that a person named William H. Powderly IV from New Hope in Pennsylvania was fined 1 083 138 USD. The amount of the sentence, and thus the sentence, was issued by a federal court in Illinois. What did he punish? According to the official communication, the main accusation against the convict was the activity which aimed at illegal acquisition of customers and distribution of false bank statements.

Be sure to read: ApuroFX with 2 million USD penalty from CFTC

Trading program

The mere allegation of misleading customers did not constitute the penalty. In its statement, the court outlined a number of additional factors that contributed to the imposition of a fine of over one million dollars. The tool used by the accused was an original program developed by him. What was his destiny? It was supposed to enter into automatic trades when trading commodity futures. It was supposed to generate exceptionally good trading results with an "effective robot". The "beta" tests of the program confirmed to potential investors that the system was able to generate profits without losing any day. On the basis of the presented excellent trading results, the defendant accepted USD 1 from the injured. The seven investors had a net trading loss of over $ 778 million in 000 months.

Prohibition of trade and restitution of losses

As a standard, in such cases automatically the accused is banned from conducting investment activities on a permanent basis. The court banned Powderly from further violating the CEA and CFTC regulations. In addition, the accused was charged with financial liability, which in his case is based on the return of money to the victims. The investors' pocket is supposed to hit 1 069 300 dollars.

The CFTC appeals for consideration

Commodity Futures Trading Commission encourages investors to be more cautious with such a deposit of their funds. Recently, more and more frauds related to trade in contracts are coming to light (read: Blue Star Trading has cheated clients for at least 775 000 USD). The CFTC draws attention to the injured that despite the fact that they have become victims of crime, some of the accused may be simply insolvent in the world. Due to the lack of sufficient funds to cover losses of victims, it will be difficult to bring criminals to financial liability. Commodity Futures Trading Commission emphasizes that it will continue to vigorously fight to improve the quality of trade regulations. Investors to be extremely sensitive to advertising and alleged services of entities offering large profits from innovative capital management systems.

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About the Author
Natalia Bojko
Graduate of the Faculty of Economics and Finance, University of Białystok. He has been actively trading on the currency and stock markets since 2016. It assumes that the simplest analyzes bring the best results. Supporter of swing trading. When selecting companies for the portfolio, he is guided by the idea of ​​investing in value. Since 2019, he has held the title of financial analyst. Currently, he is the co-CEO & Founder in the Czech proptrading company SpiceProp. Co-creator of the Podlasie Stock Exchange Academy project (XNUMXrd and XNUMXth edition).
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