BOCA RATON, FL – James Frederick Walsh is facing charges of fraudulent solicitation and failure to register with the Commodity Futures Trading Commission (CFTC), according to a complaint filed in the U.S. District Court for the Western District of Texas. The case marks the CFTC’s first enforcement action directly linking misconduct to the COVID-19 pandemic.
The CFTC alleges that from at least September 2019 through the present, Walsh defrauded members of the public by soliciting funds for forex trading on their behalf. Utilizing social media, Walsh falsely portrayed himself as a highly successful trader, promising average monthly returns of 8% to 11% or a guaranteed 3% profit each month. He allegedly claimed access to “legal, inside information” to predict forex market movements, despite having no U.S.-based forex trading accounts.
Following a cease and desist letter from the Texas State Securities Board regarding his initial fraudulent solicitations, Walsh reportedly doubled down on the deception. He falsely stated that his trading profits were *increasing* due to the COVID-19 pandemic, claiming forex returns were growing while the rest of the financial world suffered. This tactic allegedly exploited fears surrounding the pandemic to attract investors.
“We continue to actively monitor our markets to seek out bad actors using the COVID-19 crisis as a basis for investment scams,” stated CFTC Director of Enforcement James McDonald. “There is never an appropriate time to prey on innocent people’s fears, and we will aggressively pursue those who do.”
The CFTC worked in conjunction with the Texas State Securities Board on this investigation. Penalties sought by the CFTC have not been disclosed at this time. Individuals who suspect commodity trading fraud are encouraged to contact the CFTC via its toll-free hotline at 866-FON-CFTC or file a complaint online.
Source: CFTC.gov
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