Claimed its software had shown positive returns on every trade it ever made. Did people actually believe that???
The CFTC has fined California-based Victor Yu his company VFRS a total of $3.2 million in a foreign currency fraud action.
The order finds that Yu and VFRS misrepresented that they had developed trading software that made forex trading “extremely safe” and that would prevent clients from ever reaching certain loss thresholds. They also claimed that their trading software had shown positive returns on every trade it ever made (did people actually believe this???), and had successfully predicted activity in the currency markets back to the 1920s.
Apparently Yu and VFRS induced their clients to invest over $5 million in forex trading accounts between 2009 and the present, with clients losing almost $2.15 million during that period. Yu and VFRS collected over $270,000 in service fees from those clients.
For the full CFTC press release click here.
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