Jamesville, New York – The U.S. Commodity Futures Trading Commission (CFTC) has settled charges against Advanced Trading Workshop, Inc. (ATW), also known as Sniper Scalping, Inc., for fraud and failing to register as a Commodity Trading Advisor (CTA). The agency alleges ATW fraudulently solicited clients to purchase access to an online trading room.
The CFTC order requires ATW to disgorge $470,000 in ill-gotten gains and pay a $470,000 civil monetary penalty. Additionally, ATW is permanently banned from trading, soliciting, and registering with the CFTC, and must cease and desist from violating the Commodity Exchange Act (CEA) and CFTC Regulations.
According to the CFTC, from approximately August 2012 to June 2013, ATW marketed access to its “Real Time Trade Room,” promising potential clients the opportunity to learn futures trading by observing an in-house trader. ATW advertised the trader as a highly experienced professional who would trade “live” futures contracts within the room, allowing clients to “look over the shoulder” and witness real-time trades, both winning and losing.
The CFTC alleges that these claims were false. The order states that the trader never actually executed any live futures contracts within the room, instead engaging solely in hypothetical or simulated trading. Furthermore, the trader’s limited personal trading history was reportedly unprofitable. The agency emphasized the critical difference between simulated and actual trading, noting that simulations fail to account for real-world market factors like liquidity.
The CFTC found that ATW either knowingly made false or misleading statements about the trader’s experience and success, or acted with reckless disregard for the truth. By providing advice on when to buy or sell futures contracts, ATW functioned as an unregistered CTA, offering advisory services for compensation.
ATW also allegedly solicited clients to participate in a managed account program where the trader would have direct authority over their futures trading accounts for a monthly fee.
Source: CFTC.gov
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