BOCA RATON, FL – James Frederick Walsh has been ordered to pay $555,726 and is permanently banned from trading after a default judgment was entered against him by the U.S. District Court for the Western District of Texas. The Commodity Futures Trading Commission (CFTC) brought the action, alleging Walsh engaged in fraud and failed to register with the agency.
The CFTC’s complaint detailed how Walsh, from at least September 2019 through July 2020, fraudulently solicited funds from the public under the guise of trading retail foreign currency (forex) on their behalf. Utilizing social media, Walsh presented himself as a highly successful forex trader, falsely promising average monthly returns of 8% to 11%, or a guaranteed 3% profit each month.
According to the complaint, Walsh claimed to possess “legal, inside information” enabling him to accurately predict forex market movements. However, investigators found Walsh did not maintain any U.S.-based forex trading accounts. This is the first enforcement action by the CFTC directly linking misconduct to the COVID-19 pandemic.
Following a cease and desist letter from the Texas State Securities Board regarding his fraudulent solicitations, Walsh allegedly doubled down on his deceptive practices. He falsely claimed that profits had *increased* due to the pandemic, stating, “the returns in forex continue to grow as the rest of the financial world continues to suffer.”
The court order permanently enjoins Walsh from violating the Commodity Exchange Act, registering with the CFTC, and trading in any CFTC-regulated markets. The CFTC extended gratitude to the Texas State Securities Board for their assistance in the investigation.
Individuals who suspect fraud are encouraged to report it to the CFTC via its toll-free hotline (866-FON-CFTC), online tip/complaint form, or the Whistleblower Office.
Source: CFTC.gov
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