FTC Says Bogus 'Trading Academy' Is A $370M Scam

Law360 (February 12, 2020, 10:51 PM EST) -- A purported investment training program called Online Trading Academy raked in $370 million by lying about its success to lure prospective retirement-age students into paying up to $50,000 per class, the Federal Trade Commission said in a California federal court complaint Wednesday.

OTA Franchise Corp., led by Eyal Shachar, made false claims about earnings, misrepresented its training program and unlawfully exercised nondisparagement provisions, the FTC said Wednesday.

“It is illegal to make earnings claims in marketing investment opportunities or training, unless the seller has a reasonable basis to make such claims,” Andrew Smith, the FTC’s Bureau of Consumer Protection director, said...

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