Raging Bull online day trading operation will pay millions for empty promises

It sounds like a dream come true — the idea of making a lot of money quickly and easily by investing. But in the case of Raging Bull, promises that the company’s trading programs could earn people big money quickly were made-up, the FTC says.

According to the FTC, Raging Bull charged people hundreds or thousands of dollars to be a part of their trading programs. Raging Bull promised advice and trading alerts from “gurus” who the company said could double or triple their subscribers’ accounts in a week, and that subscribers could make $10,000 a week.

But Raging Bull’s promised results were not typical, the FTC says, and the company didn’t have evidence to back up its claims. People also struggled to be able to cancel recurring subscriptions charges.

To settle the FTC’s charges, Raging Bull has agreed to stop making claims about earnings without evidence. Raging Bull has also agreed to offer an easier way for people to cancel their subscriptions. The company will pay $2.425 million, which will be refunded to customers.

Before you purchase any investment-related service or any offer that includes claims about earnings:

  • Take your time.
  • Avoid high-pressure sales pitches that require you to act now or risk losing out.
  • Be skeptical about success stories and testimonials.
  • Search online for the company’s name plus words like “review,” “scam,” or “complaint.”

Originally published by Amy HebertConsumer Education Specialist, FTC

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