CFTC seeks over $10M in penalties against Silver Star FX and Silver Star Live Software
The United States Commodity Futures Trading Commission (CFTC) is pushing for more than $10 million in civil monetary penalties to be imposed on the defendants in a Forex fraud litigation.
On December 15, 2020, the CFTC submitted Motion for Default Judgment as to David Wayne Mayer, Silver Star FX LLC, and Silver Star Live Software LLC, to Judge J. P. Boulee of the Georgia Northern District Court.
The document, seen by FX News Group, stipulates that, since all of the defendants have failed to respond to the CFTC’s complaint in a timely manner, a default judgment should be entered against them. The proposed order envisages the imposition of a permanent injunction, full restitution and heavy fines.
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.
According to the proposed default judgment, the defendants shall pay restitution in the following amounts:
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SSL will have to pay restitution of $198,143.03; and
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SSLS, jointly and severally with Mayer as a control person of SSLS, will have to pay restitution in the amount of $3,712,035.93.
The proposed civil monetary obligations are in the following amounts:
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SSL will have to pay a fine of $594,429.09;
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SSLS will have to pay a fine of $9,798,107.79; and
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Mayer will have to pay a fine of $1,338,000.