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Articles Tagged with scott silver OptionSellers.com

iStock-476534078-300x231OptionSellers.Com, operated by James Cordier and Michael Gross, promoted themselves as expert options traders able to manage money for retail investors promising they can produce consistent returns with limited risk.  From offices in Tampa, Florida, Cordier and Gross touted their book “The Complete Guide to Options Selling” claiming to know “how selling options can lead to stellar returns in bull and bear markets.”

Now, OptionSellers.Com website has gone dark, and INTL FCStone, the commodities firm which maintained the customer accounts and managed the risk for loans and margin, claims that many investors owes them millions of dollars.  Investors are wondering how INTL FCStone and OptionSellers.Com lost all the money.

While money was lost on naked options, investors allege that either OptionSellers.Com or INTL FCStone failed:

iStock-476534078-300x231Silver Law Group has been retained by investors to pursue claims against INTL FCStone for losses related to OptionSellers.Com. Our clients allege that OptionSellers.Com used a web of deceptive marketing materials, misrepresentation and deception to promote a speculative trading strategy which resulted in devastating losses.  INTL FCStone allegedly allowed OptionSellers.Com to trade customer accounts including IRA accounts on margin or purchase naked options which caused losses greater than their principal investment. Further allegations relate to FCStone’s knowledge of OptionSellers’ activities and misrepresentations.

In late November 2018, OptionSellers.Com and INTL FCStone informed investors that despite previous representations regarding the safety and security of their investments, many investors had lost almost all of their investment and many investors owed additional margin calls.  James Cordier has offered his victims a video apology, but many investors are shocked to learn about his regulatory history and lack of institutional knowledge regarding options trading.

Our Experienced Commodities Fraud Attorneys 

It seemed like a great investment, in natural gas. But like many energy-based investments, there is a considerable volatility involved that’s an uncontrollable variable. In other words, you never know what may happen tomorrow, especially when trading options or using leverage.

Natural gas posted its biggest one-day percentage gain on November 14. The next day, it posted its largest one-day drop in 15 years. According to news stories, OptionSellers.com was betting that natural gas would continue to rise. When it didn’t, everything unraveled, and the company was forced to begin liquidation. Many investors borrowed through margin accounts, some with considerable amounts invested.

Margin-Account-Guidelines-300x200Tampa, FL-based OptionSellers.com was a commodities trading firm that claimed to be experienced in this type of investment. The firm’s president and head trader, James Cordier, told a recent interviewer, “Our goal is to take an aggressive vehicle and manage it conservatively.” Unfortunately, that’s not exactly what happened. Trading “naked” on margin instead of “covered,” the firm left its investors vulnerable to unlimited exposure, leading to the losses. An article explains that “OptionSellers.com and its principals negligently engaged in a risky trading strategy that was unsuitable for its clients and breached its fiduciary duties to them by putting its interests ahead of its clients.”

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