Federal Trade Commission Cracks Down on Warrior Trading For Misleading Consumers With False Investment Promises

The Federal Trade Commission is cracking down on the Warrior Trading day trading investment scheme for making misleading and unrealistic claims of big investment gains to consumers. The FTC alleges that Warrior Trading and its CEO, Ross Cameron, used those claims to convince consumers to pay hundreds or thousands of dollars for a trading system that ultimately failed to pay off for most customers. As a result of the FTC’s case, Warrior Trading will be required to pay $3 million to refund consumers and will be prohibited from making baseless claims about the potential for consumers to earn money using their trading strategies.

Warrior Trading, based in Great Barrington, Mass., promotes day-trading investments online, claiming to sell a trading strategy that will show consumers “how to make a profit in the markets.” From 2018 to 2021, the company made tens of millions of dollars selling its programs online.  The FTC’s complaint alleges that Warrior Trading’s advertising showcased the trading results of its CEO and founder, Ross Cameron, claiming that his strategies were both “profitable” and “scalable.” Warrior Trading deployed deceptive earnings claims throughout its sales pitch in violation of the FTC Act, and the Telemarketing Sales Rule (TSR).

In its online advertisements, Warrior Trading exhorted consumers:

• “Learn to Trade With Certainty Towards The Financial Freedom You’ve Always Wanted” 
• “Learn How I Made over $101,280.47 in Verified Profits Day Trading Part-Time in Under 45 Days Using 3 Simple Strategies that You Can Use Immediately to Increase Profits and Reduce Losses NOW!”
• “Start trading over my shoulder side-by-side with me because I guarantee you that next week, the week after, the week after that, I’ll be trading the one or two stocks each day that move up 20 to 30 percent.”

Enforcement Action:

Under the court order agreed to by the FTC and Warrior Trading, the defendants must:

• Pay consumer redress. 
• Shut down bogus earnings claims
• Prohibit TSR violations

The Commission vote approving the stipulated final order was 4-0. The FTC filed the proposed order in the U.S. District Court for the Western District of Massachusetts. The Commission thanks the U.S. Securities and Exchange Commission, Division of Economic and Risk Analysis, and Office of Litigation Economics for their invaluable assistance and analysis of the relevant trading data in connection with the Warrior Trading matter.

Direct Publication Source: https://www.ftc.gov/news-events/news/press-releases/2022/04/federal-trade-commission-cracks-down-warrior-trading-misleading-consumers-false-investment-promises