RagingBull Stock Advisory Service Ceases Operations for 30 days due to FTC Federal Lawsuit and TRO
Maryland Federal District Court issues TRO Against the Company and its principals, after FTC sues for allegedly deceptive practices.
December 25, 2020
RagingBull, a stock advisory service with an email subscription service, has announced that it is ceasing operations for thirty days. The FTC claims that trading services like RagingBull unfairly swing particular stocks, by getting enough retail traders to buy into stock options, that they can actually move the stock price in favor of the retail investors. The money comes from hedgefunds and their managers. It should be said, though, that hedgefund managers often manage money for retail investors.
A link in RagingBull's email below leads to the FTC's website, and an order issued in a case entitled Federal Trade Commission v. RagingBull.ComLLC.
Patrick Wieland talks about Jason Bond and his situation in a youtube video dated December 19, 2020. It's linked to this story: https://youtu.be/8mW_iLtIqWk. "It's about the family ,the community. The FTC is attacking everyone, even the subscribers. The government is trying to take down everyone at Ragingbull. They have not been able to get their entire case before the judge. The FTC is taking a very aggressive stance toward them," says Wieland.
The internet and social media have presented opportunities for others to manipulate stocks. It has been suggested that a popular Reddit thread, reddit.com/wallstreetbets, allows retail daytraders to shift the odds on a particular stock in their favor. If enough people buy stock options of say, RIOT or TESLA, those share prices will likely go up.
In response to the FTC's application, Judge George Russell of the Maryland Federal District Court issued a 17 page temporary restraining order issues TRO Against the Company and its principals. The order is dated December 17th, 2020, and sets a hearing date for a preliminary injunction on January 31st, 2021. cdn.ragingbull.com. It says, in part:
"B. In numerous instances, as the FTC alleges, Defendants have represented that their stock and options trading subscription services will show consumers how to generate substantial income in the stock market by using Defendants' purportedly simple trading strategies or following Defendants' trade recommendations. As the FTC further alleges, Defendants have also enrolled interested consumers in negative option subscription plans with quarterly or annual recurring charges, without providing a simple mechanism to cancel and prevent these recurring charges."
"C. There is good cause to believe that Defendants have engaged in and are likely to engage in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and Section 4 of ROSCA, 15 U.S.C. § 8403, and that the FTC is therefore likely to prevail on the merits of this action. As demonstrated by consumer complaints and declarations, records of undercover purchases, a report by a financial markets expert, corporate, banking and payment processing records, and the additional documentation filed by the FTC, the FTC has established a likelihood of success in showing that Defendants have: (1) made false or unsubstantiated claims that purchasers of their services are likely to earn substantial income; (2) made other material misrepresentations in the promotion and sale of their services; and (3) illegally charged consumers for products or services using a negative option feature without providing a simple mechanism to prevent recurring charges."
The email from RagingBull follows: Dear RagingBull Subscriber,
As a follow-up to our recent email, we are writing to let you know that we have made the decision to pause business operations for 30 days. This is a difficult decision but one we believe is necessary to allow us to focus our energy on defending the Federal Trade Commission's lawsuit and the New Hampshire Bureau of Securities Regulation's administrative action.
As you are now aware, the FTC's lawsuit includes a temporary restraining order (linked here). While that process is underway, it is presenting dramatic changes in our ability to provide services.
To properly defend the company in response to this lawsuit and focus our effort on returning to providing services, we are choosing to pause all services effective immediately for the next 30 days.
During this time, we will not be in a position to provide any customer service. All customer service responses will be by recorded voicemail and by FAQs posted on the website. Also, for at least the next 30 days, will not be in a position to provide refunds to those who request one.
When this is over, we hope you'll be a part of something even greater than what RagingBull is today.
I speak for all of us when I say that I cannot wait to get back to work soon!
Jeff Bishop & Jason Bond"