The Commission vote authorizing the staff to file the complaint was 5-0. They are charged with violating the FTC Act and the Consumer Review Fairness Act. The defendants in the case include OTA Franchise Corp, Newport Exchange Holdings, NEH Services, Inc., Eyal Shachar (also known as Eyal Shahar), Samuel Seiden, and Darren Kimoto. The FTC also alleges that OTA has required customers who request a refund to sign contracts barring them from posting negative comments about OTA or its personnel, and specifically from reporting wrongdoing to law enforcement agencies. “OTA has used unfounded earnings claims to bilk Americans out of their savings.” “It is illegal to make earnings claims in marketing investment opportunities or training, unless the seller has a reasonable basis to make such claims,” said Andrew Smith, the Director of the FTC’s Bureau of Consumer Protection. Evidence obtained by the FTC also indicates that instructors’ claims of amassing wealth by using OTA’s strategy are false or unsubstantiated. Trading data from a platform used by OTA customers also suggest that the vast majority of OTA’s customers do not make any money, and many lose money on top of the money they pay OTA. However, OTA does not track the trading results of its customers, and the FTC alleges that OTA’s own surveys indicate that its customers are not making the type of income OTA advertises. Additionally, OTA “instructors”-salespeople on commission who market OTA’s training and strategy to consumers in live events across the county-often hold themselves out as successful traders who have amassed substantial wealth using OTA’s strategy. OTA claims that its strategy is designed to generate income in any market, “whether it’s going up, down or sideways.” The company’s claims are often targeted at older consumers. OTA has collected more than $370 million from consumers nationwide within the last six years.Īccording to the FTC, OTA misrepresents that it has a patented “strategy” that anyone can use to generate substantial income from trading in the financial markets. The FTC alleges that OTA uses false or unfounded earnings claims to sell “training programs” costing as much as $50,000. The Federal Trade Commission has sued the California-based investment training scheme Online Trading Academy (OTA), led by Eyal Shachar. For more information, please read the most recent press release. UPDATE: The FTC has obtained a preliminary injunction in this case. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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