I now finally bring my attention to an individual who has attempted to attach his name to the Harmonic Trading legacy. Jason Stapleton of Trade Empowered and various other outfits (The Syndicate, Forex Preview, TripleThreatTrading) that he has created and have attempted to attribute his “discoveries” as improvement upon my work. First of all, since I own the trademark on Harmonic Trading and all related terminology including all patterns, you have no authority to include any strategy within my domain. You have presented what you call the Cypher but it lacks the necessary elements that make patterns harmonic. THE CYPHER IS NOT A HARMONIC PATTERN! Go ahead and try to trade this, people will realize that it is a CONTRARIAN SIGNAL at best! Personally, I think it should be called the SIPHON PATTERN because you have drained the money of good folks who are trying to learn the Harmonic Trading methodology.
No doubt, you are a shrewd Internet marketer but that’s all you are. I will no longer allow you to traffic illegally in my domain and continue your operations. You claim to uphold the values as a Constitutional Libertarian on that little show that you record from your parents’ basement but when it comes to other people’s personal rights you have no regard. Despite my attempts to contact you and Akil – your P.I.P (Partner in Plagiarism) – over the past 6 months, your lack of response to my communication demonstrates your disregard for anyone but yourself. You both have profited immensely from teaching my work and have failed in every regard to even remotely cite any source of your information. I have noticed that you recently have given me a passing reference as a response to my recent legal actions but you fail to follow the United States Fair Use statutes, especially for copyrighted material. Maybe you should consult the following post if you’re going to continue to promote ideas as your own that come from other sources:
I think Akil can spot the pattern that happened two days ago pretty well. However, your lack of ability to understand Harmonics (yes, I own the trademark on that term as well) or even care enough for your students to demonstrate any abilities in real trading conditions substantiates my concern that you are abusing my intellectual property for marketing gain. Of all the people I have reviewed during my legal discovery, you are by far the most egregious violator and I will prove to a federal court that your business has knowingly plagiarized my material.
I have been able to remove hundreds of your videos from YouTube due to my intellectual property rights for the pattern names and copyrights of illustrations that were registered 10 years ago or more. I will continue relentlessly to remove any and all content that violates my domain. I notice that you have been reposting this content under a new YouTube channel named Fabian. Don’t worry, I will get to that account very soon as well. Due to the ability of my legal team to affect your Youtube videos, you finally responded to me and I would like to post this exchange for all to see. _________________________________________________________
Scott: I removed your videos, now u try to cite me, PESAVENTO DID NOTHING TO INVENT PATTERNS, He is a bankrupt loser and you are about to be sued and removed from NINJA TRADER..
Brother I have no idea where this vitriol comes from but I’m not a bad guy. I would really appreciate it if you would stop posting negative things about me.
Is there a reason you have never reached out to me? I have been teaching for going on 7 years. I’ve never spoken to you. Not in email or on the phone.
If you had a problem with me a simple way to address it is to contact me directly.
No way. I tried to contact you for the past six months and you guys ignored me. I am not going to rest until you are fully addressed. Do you even admit the fact that you plagiarize all of my material in your courses? Are you kidding me? You took my perfect pattern alignments as your definition of improving the patterns themselves? It is very disappointing Jason to have to deal with such B.S. I love the seminar that you sell that is entitled “Crab pattern” where someone asks you where you learned all of the stuff and all you had to say was that you studied 200 books? The vitriol comes from my 30 years of work where I have shared this information to help people. Meanwhile, people like you who are Internet marketers do not have the full understanding to be in business to teach this stuff. If you think you do, why don’t you and I have a little trading challenge, put up $20,000 each and winner take all. Then you can prove to people that you actually understand my work. You say you are a Libertarian but you have no regards for other people’s intellectual property rights. I own the trademark, copyrights and I now have a patent pending on the entire process. I would check yourself my friend and make sure that you get in alignment with me or you will not be doing harmonic patterns much longer. People know about you now and I will not stop until the situation is resolved. If you got the guts, send me your phone number and we can have a talk. Maybe now that you know that I’m serious you will finally respond to this message. Never giving up, Scott Carney
Jason: What is it you want? Do you want me to cut you in on a piece of my business? Are you telling me I either let you give the orders or you’re going to try and shut me down? I am one of 100 guys who work with patterns and they are only a small part of our curriculum. Is there a reason you’re singling me out?
Scott: I want the DOZENS of your former students whom have contacted me over the past year to stop losing money due to your lack of understanding…they ALL TELL ME you present this as your own, jack them for thousands and end up in worse shape than they started. I WANT NOTHING FROM YOU BUT TO GET OUT OF MY PATTERNS SELLING FOR PROFIT. Keep your Cypher and stop calling it a harmonic pattern because it lacks the elements that make structures harmonic. I’ve seen your course and materials…”set and forget” – are you insane? or how about the ADV Pattern Course with entire modules named CRAB, BAT…Let me direct your attention to:
BAT PATTERN Trademark Application of Carney, Scott – Serial Number 86864860 https://trademarks.justia.com/868/64/bat-86864860.html
…these are 2 of 20 that I own.
I DON’T GET YOU JASON…You are acting stupid and I know you are a sharp guy, great marketer but blatant plagiarizer….why? I am reasonable, sent you several emails – AKIL too – but it is clear you thought you could hijack this. We could have done insane things together as I have established a global HT Network but I have been through too much in my life to tolerate this garbage. Also, go ahead and cite Pesavento because you are aligning yourself with a lying, bankrupt loser who tried to steal from just about everyone. Ask Bryce Gilmore, Jim Twentyman and others…he was bankrupt from ’95-’02 while telling everyone he made $1million a year…he fooled me for about 1 yr until I busted him. I DEFINED ALL THE RULES THAT ARE NOW THE INDUSTRY STANDARD that tens of millions of people are discovering. I have these people with me and they are very, very tired of getting ripped off… I am now going public on all of this because I respect the fiduciary responsibility that comes with this business – as a man of faith, as a man of integrity and as a man who cares more about people than scamming a quick buck. You made the top 5 of Harmonic Traitors and it will be clear to all now.
Jason: Well Scott the things you are saying about me and my company online are untrue. I’ll ask you to please take them down. Regarding your claims, I will have to look into it. I claim no expertise in that area.
Scott: My attorney will be in touch
Chat Conversation End
So, I am filing legal action against you and recently my attorney sent you a Cease and Desist letter. It goes something like this:
Notice to Cease and Desist All Business Activities
Mr. Jason Stapleton
Trading Institute LLC
15700 College Blvd, Ste 301
Lenexa, KS 66219
Web: tradeempowered.com <http://tradeempowered.com/>
Dear Mr. Stapleton,
I represent Mr. Scott Carney creator of the patterns and owner of all intellectual property associated with the terminology and illustrations protected by international Trademark and Copyright law that encompass the Harmonic Trading methodology. You are under jurisdiction in the United States to abide by the laws and procedures required to use his intellectual property through written consent and proper citation. In our opinion, you have blatantly and knowingly violated these regulations. Despite Mr. Carney’s attempt to contact you over the past six months, you have ignored his requests and your business has continued to profit from his intellectual property domain.
We hereby give you 30 days to Cease and Desist all activities related to his intellectual property, respond to this notification and prepare to come to a financial settlement related to your damage to his protected domain. We are prepared to pursue all legal action against your current and prior business entities. We will petition your Federal District court in Kansas with an injunction to seize business and personal assets of you and your related partners and employees until such financial remedy is realized. We demand that you immediately end all business operations including website services, education programs and your Constellation software damaging Mr. Carney’s intellectual property. We consider the violations that you have committed during the past six years as material and significant.
Based upon our legal due diligence to date, we estimate that you have earned in excess of $7million over the past three-year period at a minimum, selling products and services related to Mr. Carney’s intellectual property. Typically, these penalties range from 100-300% of revenues received from your business related to Mr. Carney’s domain. This would result in our initial legal claim to be filed for approximately $15-20million in civil damages. If you do not respond to this letter within 30 days to resolve these infractions, we will begin proceedings to file a motion that will prevent you from further business activities. After receiving approval of this injunction, we will move ahead with a civil lawsuit to recover financial damages for all business revenues received through your illegal activities over the past five years.
After we receive approval of our request of an injunction from the U.S. District court, we will subpoena your financial records to get exact revenue figures and apply the legal damage multiplications that are associated with such infractions. Your past and present related companies such as TripleThreatTrading.com, The Syndicate and your “Harmonic Retreats” will be investigated thoroughly to determine if more substantial damages have been incurred. Furthermore, your partners and material employees including Mr. Todd Brown and Mr. Akil Stokes will be named as co-defendants in our proceedings, as they are liable as knowing participant in these civil infractions.
As a part of this Cease and Desist request, we would like to outline a few examples that demonstrate the degree of your violations. Mr. Carney has received several variations of your webinar programs, live events and advanced pattern course from many different former students who are quite unhappy with your instruction. Many of these individuals have come forth and they are willing to testify on Mr. Carney’s behalf to substantiate our claims. Although you give Mr. Carney a glancing reference in one or two of those programs, you failed to acquire proper written consent beforehand. We will prove to the U.S. Federal Court that you knowingly omitted proper citation of his work. Your insufficient citation and misrepresentation clearly violates United States intellectual property law. We present two of many direct violations that we have identified for you and your attorney to understand the basis of these claims.
“Trade Empowered Advanced Pattern Course” Pattern Improvements
We have cited a blatant and material offense in your “Trade Empowered Advanced Pattern Course” presentation that clearly gives the appearance that you have created an improvement on his intellectual property but it is merely a plagiarized illustration from Mr. Carney’s “Harmonic Trading: Volume One” book (implied Copyright 2004 and Registered Copyright 2010 Financial Times Press, Pearson Education).
From Your “Trade Empowered Advanced Pattern Course” Week 7:
“NOTE: There are a wide variance of Fibonacci levels that can be applied to specific patterns that will be technically “correct”. We’re going to briefly cover those ratios but for the purposes of our training when I refer to an advanced pattern I am referring to the “perfect” pattern. This will reference specific ratios that historically produce the highest probability outcome. ” t2U_fxpro_190100_advanced_patterns.pdf July 2014
(We have documented evidence of this course as early as May 2011)
We bring your attention to Mr. Carney’s 2010 filed Copyright Registration April 2010 ISBN-10:0-13-705150-6 Harmonic Trading Volume One: Profiting from the Natural Order of the Financial Markets pages 119-122 Pearson Education LTD. where he defined, outlined and illustrated the perfect harmonic pattern concepts long before you “optimized” harmonic patterns. You clearly misrepresent the work and refer to the perfect pattern by stating, “…for the purposes of our training when I refer to an advanced pattern I am refferring to the “perfect” pattern …“ This concept was originally created and initially presented in Mr. Carney’s Harmonic Trading Volume One which was released in 2004 with an implied Copyright and later republished by Financial Times Press with a registered Copyright dated 2010. We direct your attention to pages 119-122 of his 2010 book that outlines the exact structure he discovered while in your course you show the same material. The terminology of a perfect pattern and the exact illustrations that Mr. Carney presented are protected under international Copyright that cannot be used in business for profit under any circumstances without his express written consent and proper citation on your behalf. Furthermore, your interpretation of his perfect illustration that changes one ratio measurement does not represent a material improvement of this information and confirms your knowing violation of his intellectual property domain.
Example 2: Trade Empowered “T2 University FX Pro” Live Webinar Course
Another example of your egregious violation comes from a live webinar presentation entitled the Crab pattern. We have created a link for you to review a brief snippet from that presentation. At the 39-minute mark, an individual asks you where did you learn all of this. You respond by saying that you studied 200 books to gather this knowledge. We have edited the material for you to easily reference this infraction. Please review the following link at this location: https://www.youtube.com/watch?v=t60BGFDEWrI&feature=youtu.be
Mind you, this presentation was entitled the “Crab Pattern” which is a term created by Mr. Carney and trademarked (No. 2,953,258) registered May 17, 2005.
Your other webinar titles including the Bat pattern, the Gartley, the Butterfly and others are in direct violation, as well. These are two examples of many infractions that you have incurred in Mr. Carney’s domain of Trademarks and Copyrights over the past five years at a minimum. Among his numerous registrations, Mr. Carney owns the Trademarks and Copyrights for all of his harmonic pattern discoveries including the Gartley, the Bat, the Butterfly, the Crab, as well as related terminology of Harmonics, Harmonic Trading, Potential Reversal Zone and many more.
We have more than a dozen specifics infractions that we will gladly present in our legal proceedings when we file an injunction against your company to stop all activities in our process to file a claim for damages. In most cases Mr. Stapleton, Copyright and Trademark violations result in triple damages of monies received as a result of your business endeavors in Mr. Carney’s intellectual property domain. Mr. Carney is very serious and he will not stop in his determined pursuit to permanently prevent you from further activities in his domain and seek financial remedy for the extensive damage incurred to his intellectual property.
Although you have recently responded to Mr. Carney after his repeated requests, he will no longer communicate with you directly. All communication must be handled through my office. You or your attorney must contact me directly within thirty days of receipt of this notice. If we do not hear from you, we are prepared to move ahead immediately with all legal proceedings. We await your response to disclose your willingness to agree to a settlement in regards to these damages and your proposal of resolution for future business endeavors in his intellectual property domain.
Attorney-at-Law for Scott M. Carney
You violate the United States Fair Use guidelines that dictate copyright usage and egregiously damage all trademarks that have been secured by me. These examples of misrepresented pattern illustrations in your seminar material and other strategies on your YouTube videos are exactly from my books, The Harmonic Trader (1998), Harmonic Trading Volume 1 (2004, 2010 Second Ed.) and Harmonic Trading Volume 2 (2007, 2010 Second Ed.) There are numerous other of violations including your variation of the Potential Reversal Zone (PRZ) that you call the Price Reversal Zone. Classic and typical of someone who has no idea how to trade or has done the work to know where all of this originates. Your hubris will be your downfall. How could you be so obtuse ? Your offenses run far and wide. Now, you will be dealt with legally and be held to account on every violation from course material, website resources and other information that you disseminate illegally.
Scott M. Carney