Palos Verdes Estates, CA – September 30, 2016 – Joseph Dufresne, also known as Joseph James, and Megan Renkow, also known as Megan James, are facing charges of commodity futures trading fraud, the U.S. Commodity Futures Trading Commission (CFTC) announced today. The civil enforcement action, filed in the U.S. District Court for the Central District of California, alleges a fraudulent marketing scheme conducted through their company, United Business Servicing, Inc. (UBS), operating as SchoolofTrade.com (SoT).
The CFTC alleges that Dufresne and Renkow systematically misled potential customers from at least October 2011, through false statements and omissions regarding Dufresne’s trading experience, the profitability of SoT’s trading strategies, and the authenticity of live trading demonstrations. They allegedly sold over 877 memberships in SoT, generating more than $2.7 million.
Specifically, the complaint claims Dufresne was falsely presented as a successful, award-winning professional trader, when in reality he lacked significant trading experience and had never achieved consistent profitability. The pair also allegedly falsely claimed SoT’s strategies generated substantial profits annually, despite none of their accounts ever being profitable. Further, the CFTC alleges the “Live Trade Room” demonstrations were fabricated, with no record of the claimed trades or profits appearing in their accounts.
The CFTC also alleges Dufresne and Renkow failed to prominently disclose that trading results presented in their promotional materials were based on simulations rather than actual trading, violating CFTC regulations.
The CFTC is seeking restitution for defrauded clients, disgorgement of the $2.7 million in ill-gotten gains, a civil monetary penalty, permanent registration and trading bans, and a permanent injunction against future violations of federal commodities laws. Erica Bodin, Maura Viehmeyer, Alan Edelman, James H. Holl III, Michael Solinsky, and Rick Glaser of the CFTC’s Division of Enforcement are leading the litigation.
The CFTC urges potential investors to be wary of fraudulent commodity trading systems and advisory services, and encourages reporting of suspicious activity.
Source: CFTC.gov
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