The United States Commodity Futures Trading Commission (CFTC) has managed to secure a clerk’s entry of default against Tradewale LLC and Tradewale Management Fund, an allegedly fraudulent FX scheme.
The defendants were duly served with the summons and complaint in the action brought by the CFTC but has failed to plead within the time prescribed by the law.
Earlier in September, the derivatives markets regulator levied an action against Tradewale LLC, its UK associated managed fund and its principal, Valdas Dapkus, over fraudulent offerings related to a forex scheme.
The defendants told victims that they would use pool funds to trade currencies, according to the complaint, filed in the US District Court of New Jersey.
Through its website, tradewale.com, as well as various social media platforms, Tradewale raked in more than $700,000 by misrepresenting their software’s effectiveness.
The claims to bolster the credibility of their “unique trading system” included that it relies on artificial intelligence algorithms with a proven track record to trade forex. They also touted returns of 4% – 11% a month and average yearly returns of over 55% with “minimal risk.”
Furthermore, in their solicitation materials, the defendants never included the hypothetical disclaimer required by CFTC regulations, which plainly states, “the results are based on simulated or hypothetical performance results that have certain inherent limitations.”
