AG Bonta reaches $750,000 settlement with trading platform for operating without proper licensing in California
California – The unlicensed day trading platform AwesomeCalls and its CEO, Anthony Haworth, have agreed to pay California Attorney General Rob Bonta $750,000 for breaking state laws for giving financial advice and advertising. The resolution is a big step toward holding unregistered financial services accountable for misleading customers, especially those who want to make quick money by trading online.
The California Department of Justice says that AwesomeCalls ran a digital chat room where Haworth gave investment advice to users even though he didn’t have proper permission to do so. The program, which has been around since at least 2014, made bold claims that users might make hundreds of dollars every day by following Haworth’s real-time market commentary.
There were captivating testimonials and ads that made Haworth look like a skilled day trader, even though he didn’t have any professional credentials or a proven history of successful trading.
“AwesomeCalls deceived consumers by marketing Mr. Haworth as a brilliant day trader and boasting that they could help subscribers make thousands of dollars a day, when in reality they were operating without a license,” said Attorney General Bonta. “Our settlement requires AwesomeCalls and its CEO to stop misleading consumers and serves as a reminder: Offering investment advice without a license is illegal.”
The Attorney General’s office said that Haworth had also not told potential clients about earlier disciplinary proceedings, such as being forbidden from operating as an escrow agent for misappropriating funds. This made them think he was more trustworthy and knowledgeable about money than he really was.
AwesomeCalls and Haworth are forever barred from giving investment advice in California without the right license as part of the agreed-upon decision. They can’t additionally publish fraudulent or deceptive testimonials or ads that claim their services are better than they are without proof. The $750,000 in fines will be used to enforce California’s consumer protection laws and stop similar infractions from happening again.
The case is a clear message to people and businesses who try to get around financial rules, especially in the high-risk, fast-paced world of day trading. Regulators keep a tight eye on digital financial services to make sure they follow the rules and keep consumers safe from dishonest or untrained people.
A copy of the stipulated judgment can be found here.
