LOS ANGELES – The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Joseph Dufresne (also known as Joseph James), Megan Renkow (also known as Megan James), and their company, United Business Servicing, Inc. (UBS), operating as SchoolofTrade.com (SoT). The defendants are accused of fraudulently marketing commodity futures trading strategies and systems to unsuspecting investors.
According to the CFTC’s complaint filed in the U.S. District Court for the Central District of California, Dufresne, Renkow, and UBS engaged in a pattern of false statements and omissions from at least October 2011 through September 2016. The alleged scheme involved misrepresentations regarding Dufresne’s professional experience, the profitability of SoT’s trading strategies, and the validity of trades purportedly made during SoT’s “Live Trade Room” sessions.
The CFTC alleges Dufresne was falsely presented as a successful and award-winning professional trader, when in reality, he has limited experience and has never achieved consistent profitability. Furthermore, the defendants are accused of claiming substantial annual trading profits for SoT’s strategies, despite the fact that none of their accounts have ever been profitable. The “Live Trade Room,” marketed as a platform for real-time profitable trading, is alleged to have been a sham, with no verifiable record of the claimed trades or profits.
The defendants allegedly sold at least 877 memberships in SoT, collecting over $2.7 million during the period covered by the complaint. They also failed to include legally required disclaimers in their marketing materials regarding simulated trading results and client testimonials.
The CFTC is seeking restitution for defrauded clients, disgorgement of ill-gotten gains, a civil monetary penalty, permanent trading bans, and a permanent injunction against future violations of federal commodities laws. The case is being pursued by Erica Bodin, Maura Viehmeyer, Alan Edelman, James H. Holl III, Michael Solinsky, and Rick Glaser of the CFTC’s Division of Enforcement.
The CFTC urges investors to be cautious of commodity trading systems sold online and to consult their fraud advisories for warning signs of potential scams. Customers can report suspicious activity to the CFTC.
Source: CFTC.gov
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