SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

SchoolofTrade: Another Guru Busted


The U.S. Commodity Futures Trading Commission (CFTC) filed a civil anti-fraud enforcement action charging Joseph Dufresne (aka Joseph James) and Megan Renkow (aka Megan James), and their company, United Business Servicing, (UBS), doing business as SchoolofTrade.com (SoT), with fraudulently marketing commodity futures trading strategies and systems.

School of Trade (SoT) has been extensively reviewed by TradingSchools.org in November 2015 and the verdict was: 100% scam.

 

The CFTC Complaint alleges that from at least October 2011 through the present, Defendants, in the course of selling memberships in SoT, have engaged in a systemic pattern of false statements and omissions concerning:

 

a) the professional experience and trading success of Dufresne;

 

b) the profitability and performance record of SoT’s trading strategies and systems; and

 

c) the actual nature of the trading activity purporting to take place during SoT’s “Live Trade Room.”

 

The CFTC’s Complaint also alleges that Defendants failed to display prominently in their solicitation material certain required disclosure statements concerning simulated or hypothetical trading results and client testimonials.

 

Defendants sold at least 877 memberships in SoT and took in more than $2.7 million during the period charged in the CFTC’s Complaint.

 

Specifically, the CFTC alleges that Defendants have:

 

1) portrayed Dufresne as a successful professional trader with years of experience and numerous awards and recognitions when, in fact, Dufresne has little experience, has never been professionally recognized, and has never been a profitable trader;

 

Capture.PNG

 

2) touted the profitability of SoT’s strategies and systems and claimed hundreds of thousands of dollars in trading profits earned every year, when, in fact, none of the Defendants’ accounts has ever been profitable; and

 

3) promoted SoT’s “Live Trade Room” in which they purport to make profitable trades on live accounts in real time when, in fact, none of the trades called or profits claimed to have been made in the “Live Trade Room” as set forth in the Complaint can be found in any of Defendants’ accounts.

 

Additionally, the Complaint alleges that Defendants have failed to prominently display in their various solicitation materials certain language, required pursuant to CFTC Regulations, stating that their results are based on simulated or hypothetical performance results and do not represent actual trading.

 

In its continuing litigation, the CFTC seeks restitution to defrauded clients, disgorgement of ill-gotten gains, a civil monetary penalty, permanent registration and trading bans, and a permanent injunction against future violations of federal commodities laws and regulations, as charged.

 

For the official notice from the CFTC click here.

 

This claim joins few other claims filed recently, SEC complaint against Manny Backus being just one of them.

 

In 10 Signs Of A Fake Guru  I described how to recognize a fake trading guru. If your guru makes some ridiculous performance claims (like turning $12,415 Into $4,155,000, or making 29,233% in 12 months, etc.), he might be a good candidate for the next S.E.C. or CFTC press release.

 

tradingschools.org is doing an excellent job in exposing those scams. Next time you consider subscribing to one of those gurus, I highly recommend reading their reviews. I'm glad that authorities finally started to go after those charlatans.

 

Well done CFTC!

 

Related Articles

10 Signs Of A Fake Guru
Can You Really Turn $12,415 Into $4M?
Can you double your account every six months?
Performance Reporting: The Myths and The Reality

Do You Need A Lawyer? I Don't.

 

 

Want to learn how to trade successfully from real traders

 

Start Your Free Trial

 

What Is SteadyOptions?

Full Trading Plan

Complete Portfolio Approach

Diversified Options Strategies

Exclusive Community Forum

Steady And Consistent Gains

High Quality Education

Risk Management, Portfolio Size

Performance based on real fills

Try It Free

Non-directional Options Strategies

10-15 trade Ideas Per Month

Targets 5-7% Monthly Net Return

Visit our Education Center

Recent Articles

Articles

  • Anchor Maximum Drawdown Analysis

    One of the most common questions asked about the Anchor and Leveraged Anchor strategies relates to “what’s the most I can lose on the trade.”  Fortunately, that’s a fairly easy number to calculate for any one given time on a known portfolio.  A yearlong dynamic calculation is a bit more difficult. 

    By cwelsh,

    • 0 comments
    • 132 views
  • Options: Debt and Net Return

    This is the last in a series of articles about how dividends affect option value and volatility. In picking stocks for options trading, what are your criteria? Analysis of dividends, debt and net return – all fundamental tests – help identify strong value companies (and lower-volatility options) versus weak, high-risk stocks.

    By Michael C. Thomsett,

    • 0 comments
    • 244 views
  • Can you "Time" the Steady Momentum PutWrite Strategy?

    As a financial advisor, investment advisor, hedge fund manager, model developer, and newsletter signal provider for over a decade now, I've had the opportunity to see quite a bit of human nature in action.

    By Jesse,

    • 0 comments
    • 277 views
  • How Steady Momentum Captures Multiple Risk Premiums

    Our Steady Momentum PutWrite strategy attempts to outperform the CBOE PUT index, which writes cash secured puts on the S&P 500. An investable version of this strategy can be purchased with the ETF PUTW. The historical data for PUT extends back more than 30 years, highlighting how writing puts can be an attractive strategy.

    By Jesse,

    • 0 comments
    • 478 views
  • The Effect of Dividends on Options Pricing

    The theory of dividends and underlying stock prices is simple: The underlying price is expected to decline on ex-dividend date, by the amount of the dividend. As a result, option prices should decline as well. Under this theory, calls for higher dividend stocks should be valued lower and puts should be valued higher.

    By Michael C. Thomsett,

    • 0 comments
    • 361 views
  • 5 Ways To Identify Fake Forex Broker Reviews

    Many traders or future traders shop for a broker to work with and find endless reviews on the web, and not all are genuine. Here are 5 ways ways to separate the good from the bad. There are lots of sites that specialize in forex broker reviews and lots of talk about brokers in various forums.

    By Kim,

    • 0 comments
    • 215 views
  • 3 Dividend traps to Watch For

    Dividends are almost universally viewed as positive aspects of stock selection and options trading. The higher the dividend yield, the more positive. But does this ignore some dangers in dividend trends? In fact, there are three ways in which dividends can mislead traders and create positive impressions when in fact, the news is negative.

    By Michael C. Thomsett,

    • 0 comments
    • 301 views
  • Dividends and Options

    Steady Options has received numerous inquires into how dividends impact options, option prices, and the owners or option contracts. The impact of dividends should be understood by any option contract trader.  Fortunately, the rules for option contracts and dividends are clear and straightforward. 

    By cwelsh,

    • 0 comments
    • 326 views
  • When Can You “Trust” a Backtest?

    There's a joke in the financial industry that "nobody has ever seen a bad backtest". There certainly are bad ones, but nobody ever markets them. They just get thrown in the trash. Even academics can fall prey to this.

    By Jesse,

    • 0 comments
    • 267 views
  • Increasing Yield Through Covered Calls

    When starting out with options, a natural place to begin is with covered calls. It’s a very easy to understand strategy for those that are familiar with stock ownership. The strategy involves buying a stock in lots of 100 shares. The total size will depend on you account size and how much exposure you want to take.

    By GavinMcMaster,

    • 0 comments
    • 370 views

  Report Article

We want to hear from you!


I always knew there was something fishy about those guys. Good job CFTC!

Share this comment


Link to comment
Share on other sites

Well, it doesn't really take that much to smell a fraud. After 5 minutes on a website, I can tell you which one is legit and which one is scam. schooloftrade.com smelled scam from ten miles.

Share this comment


Link to comment
Share on other sites

It's interesting that Investimonials removed schooloftrade reviews from their website. Apparently they don't want to be associated with them. If I remember correctly, they were heavy advertisers. 

Share this comment


Link to comment
Share on other sites


Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy and free!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now

Options Trading Blogs