FTC sues Online Trading Academy (OTA) for allegedly making false earnings claims

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The Federal Trade Commission (FTC) filed a lawsuit against OTA Franchise Corp, Newport Exchange Holdings and NEH Services collectively operating under the name Online Trading Academy (OTA).

According to the consumer protection watchdog said OTA is an investment training scheme. Its’ CEO and owner Eyal Shachar and two other individuals, Samuel Seiden and Darren Kimoto were also named as defendants.

FTC Allegations against OTA

In the complaint, the FTC alleged that the defendants collected more than $370 million by selling training programs to consumers nationwide over the past six years.

The defendants attracted consumers to purchase their training programs by making false or unfounded earnings claims. The training programs cost as much as $50,000, according to the consumer protection watchdog.

Additionally, the FTC alleged that OTA claimed that it has a “patented strategy” to any asset class including stocks, options, futures, and currencies. Its patented strategy can show students how to spot “low-risk, high-potential investing opportunities.”

OTA targeted older consumers

Furthermore, OTA allegedly targeted older consumers and claimed that they could generate substantial income by using its patented strategy.