Statement about my CFTC case
In 2020, I settled a 4-year civil (i.e. non-criminal) case with the CFTC.
The CFTC review began around a technicality because I had overlooked updating the corporation name on my CTA license, which I had since 2007. The case then expanded to the wording on my old website and the non-inclusion of proper disclosures. The CFTC limited the scope of their inquiry to the period from July 2014 to December 2015.
I have been trading and teaching students for 18 years, and the period from July 2014 to December 2015 (when I operated under the brand name “Global Trade Room”) was the only time in my career I took on trading partners as part of my service. Decisions my partners made (such as how they ran the service) helped impair my dealings with the CFTC.
The CFTC never questioned my trading method or the services to students. Nor did I take money from investors, which is what typically occurs when the CFTC investigates. Furthermore, the CFTC did not question The Trader Institute, which has been operating successfully since 2016. During the CFTC investigation, I could trade and educate students. The settlement allows me to continue trading and to educate students. In short, my trading and education of students was never an issue.
The CFTC first approached me in August 2016. I made several errors in handling their initial correspondence. Firstly, I delayed in responding and, secondly, I did not seek adequate counsel early in the process. As I had never taken money from investors nor traded accounts for other individuals, I did not believe the initial CFTC letter was a significant issue. However, non-response in itself is considered problematic by the CFTC. It allowed the review to escalate to court and reduce my options to negotiate a more favorable outcome. In 2020, I chose to settle with the CFTC and close this chapter of my life so I could move forward.
Everybody will claim to be a person of integrity. Although I acted in good faith, I did act erroneously, and I learned many lessons from this experience.
I am proud of the service I operate for new and aspiring traders. Ultimately, The Trader Institute exists for my students, and I would not continue to function if I do not deliver value. My mission is to give traders the best available service and education to bring them to profitability, pure and simple. This mission, or my ability to execute it, was never in question by the CFTC.
This statement is not an implication that the CFTC complaint or the Consent Order was without merit. I do not dispute the resolution. I value the CFTC’s oversight, and without regulatory bodies such as the CFTC, members of the public would not receive protection from unscrupulous individuals.
If you are a current or prospective student, my sales team and support staff will be happy to discuss the case with you should you have any questions.
In June 2020, Simon delivered a webinar to his long time members explaining the events that led up to the CFTC case. We have made the recording available for you to watch.