The FTC alleges that Warrior Trading and its CEO, Ross Cameron, used those claims to convince consumers to pay hundreds of thousands of dollars for a trading system that 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 is paying a heavy price for misleading consumers with bogus money-making claims,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.
Warrior Trading 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.
Day trading is a form of investing where consumers buy and sell stocks over short intervals throughout the day, hoping to make a profit during the short times they own shares in a firm.
The FTC’s complaint alleges that Warrior Trading’s advertising touted the trading results of its CEO and founder, Ross Cameron, claiming that his strategies were both “profitable” and “scalable.”
The vast majority of customer accounts actually lost money, with many consumers losing thousands of dollars trading on top of the thousands they paid Warrior Trading, according to the lawsuit.
In its online advertisements, Warrior Trading told 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.”