LAS VEGAS, NV – June 28, 2018 – Mirko (Mick) Schacke of Brentwood, California, has been found guilty of futures trading fraud by the U.S. District Court for the District of Nevada. Judge Gloria M. Navarro entered an Order of Summary Judgment against Schacke and a Default Judgment against his company, TradeMasters USA, LLC, on June 22, 2018, amending a previous order from September 13, 2017.
The court found that Schacke and TradeMasters engaged in fraudulent solicitations of customers purchasing futures trading software, failed to register with the Commodity Futures Trading Commission (CFTC), and neglected to provide necessary disclosures to investors. The pair jointly and severally are required to pay $168,626 in disgorgement to those defrauded, along with a $505,878 civil monetary penalty.
The case originated from a CFTC enforcement action filed on August 15, 2016. According to the court order, Schacke and TradeMasters fraudulently collected $168,626 from 39 customers who purchased automated trading software licenses ranging from $1,500 to $20,000. They falsely advertised the software’s performance, claiming a 300% return in three months for a “real customer” and monthly incomes of $5,000 to $10,000 for users. In reality, the software did not function as advertised, and customers lost money.
The court also found that Schacke misrepresented the experience of TradeMasters’ “coaches,” stating they had over two decades of trading experience when Schacke was the sole coach and lacked any prior trading background. Presented trading results were revealed to be hypothetical, not actual profits, and video testimonials were from paid actors falsely identified as customers. Schacke personally executed trades for three customers without the required registrations, and TradeMasters failed to disclose the use of paid testimonials on their website.
The CFTC notes that restitution to victims is not guaranteed, as wrongdoers may lack sufficient assets. The agency pledges continued vigilance in protecting customers and holding accountable those who violate the Commodity Exchange Act and CFTC Regulations.
Joseph Patrick, Susan B. Padove, Susan Gradman, Scott R. Williamson, and Rosemary Hollinger of the CFTC Division of Enforcement were responsible for the action.
Source: CFTC.gov
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