CFTC secures default judgment against Silver Star FX
The United States Commodity Futures Trading Commission (CFTC) has secured a default judgment against David Wayne Mayer, Silver Star FX LLC, and Silver Star Live Software LLC.
On July 27, 2021, Judge J. P. Boulee of the Georgia Northern District Court granted a motion by the CFTC for such a judgment against the defendants that were accused of Forex fraud.
Under the judgment, seen by FX News Group, the defendants will have to pay restitution in the following amounts: (i) Silver Star Live in the amount of $198,143.03; and (ii) Silver Star Live Software, jointly and severally with Mayer as a control person of SSLS, in the amount of $3,712,035.93.
Because the defendants committed repeated violations of a core provision of the Act by defrauding more than 9,000 clients out of millions of dollars, the Commission has asked that the Court order the defendants to pay significant civil monetary penalties.
The Court ordered Civil Monetary Penalty Obligations in the following amounts:
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Silver Star Live in the amount of $594,429.09;
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Silver Star Live Software in the amount of $9,798,107.79; and
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Mayer in the amount of $1,338,000.
Let’s recall that on June 11, 2020, the CFTC filed its Complaint against David Wayne Mayer , Silver Star Live FX LLC d/b/a Silver Star Live (SSL), and Silver Star Live Software LLC (SSLS).
The Complaint alleges that from at least July 2018 through March 2019, Mayer worked as a “Master Trader” for SSL, and its successor entity, SSLS, two unregistered Commodity Trading Advisors (CTAs) that purported to sell a fully-automated retail Forex trading software system.
Mayer, the creator of the Forex Trading System sold by SSL, then SSLS, defrauded members of the public by fraudulently soliciting them to trade forex through accounts managed by the Forex Trading System. Mayer, using the pseudonym “Quicksilver,” and acting as an unregistered Associated Person, solicited clients through videos posted online and on social media accounts, as well as at in-person marketing events. The solicitations contained material misrepresentations and omissions.
According to the Complaint, through this fraudulent marketing of and solicitation for the Forex Trading System, Mayer, SSL, and SSLS engaged, are engaging, or are about to engage in acts and practices that violate certain anti-fraud and registration provisions of the Commodity Exchange Act and Commission Regulations.
The case was closed on July 27, 2021.