CFTC Continues to Crack Down on Illegally Operating Binary Options Companies
In a global atmosphere which is increasingly strict when it comes to binary options regulations, the US Commodity Futures Trading Commission (CFTC) remains ever-vigilant. In recent news, the regulator went after 8 companies and individuals who were offering their services in binary options and FX without CFTC regulation to US consumers. According to the official press release, charges were filed against:
Allen Investment Management, LLC et al., an Indiana LLC and founder and officerRyan Jacob Allen;
Forex Entourage LLC, a Utah LLC and its cofoundersPaul Anthony RomeroandZachary Duffy;
HedgeFund4U, LLC, a California LLC and its chief executive officerIsaac Ticon;
Hooley Solutions LLC, a Utah LLC and its founder and ownerSteven Bradley Hooley;
International Markets Live, Inc.; a New York corporation;
LegionFX LLC, a Nevada LLC;
The Lion’s Share FX,a Michigan company and co-foundersJordan Denham,Collin HargisandJosh Pascoe; and
Wealth Generators, LLC, a Utah LLC.
The CFTC reports that this type of unregistered activity is on the rise.
CFTC Demands Binary Options Marketer Michael Shah Pay a $56 Million Penalty
It is no longer just binary options brokers which are being penalized for fraud. Some binary options marketers are also looking at massive fines. The Commodity Futures Trading Commission (CFTC) is asking the Florida Middle District Court to impose a $56 million civil monetary penalty on one Michael Shah, a marketer who operated a company called Zilmil, Inc. This is on top of the disgorgement amount totaling $18.67 million. Shah and the other defendants in the case lured in customers with misleading trading systems such as Millionaire Money Machine, Binary Genetic, and 2014 Millionaire. These were used as incentives to garner sign-ups on popular binary sites like TradeRush, TraderXP, Banc de Binary, and GlobalTrader365. If you would like to learn more, visit Finance Feeds, or view the case over at PacerMonitor.
When one typically hears the phrase “forex scam” one automatically assumes that it is being perpetrated by an unlicensed or unregulated forex broker. For the most part, that assumption is correct. All you have to do is a quick google search and you will find numerous articles detailing reprehensible acts committed by unregulated forex and binary options brokers. However, there have been numerous instances of regulated forex brokers skirting the rules.
Not all regulated brokers are trustworthy
Unfortunately, there are numerous regulated forex brokers that have defrauded unsuspecting clientele as well. Last year on the CFTC slapped a $7 million fine on Forex Capital Markets (FXCM) in a civil monetary penalty for engaging in fraudulent and misleading solicitations, spanning from September 4, 2009, through at least 2014. Additionally, the CFTC emphasized that FXCM had misrepresented that its ‘No Dealing Desk’ trading platform had no conflicts of interest with its clientele. Instead of running a true ECN execution platform where trades are performed directly in the interbank market, their clientele’s trades would be redirected to a Effex Capital LLC, which was originally designated to be an independent market maker but was, in reality, an extension of FXCM. Effex Capital would take very aggressive forex trades against the investors in order that they would lose and in return, FXCM would be the beneficiary of some very high kickbacks, which they received under the table from FXCM.
FXCM barred from the U.S.
Because of their duplicitous practices, the CFTC withdrew their regulation and FXCM was no longer allowed to service U.S. customers. Additionally, FXCM was caught by the FCA in yet another forex scam. They took away their investors’ positive swaps, causing them to only receive negative swaps. Surprisingly, the FCA did not remove their regulation.
Beware of OTCapital
OTCapital, forex broker regulated by ASIC has been swindling numerous investors. Broker Complaint Registry has received numerous complaints from those who have been victimized by their reprehensible practices. Complaints have ranged from not allowing clients to withdraw their earnings to never receiving a call back after they had deposited. Unfortunately, ASIC has not taken any action against OTCapital.
Protect yourself from a forex scam
Before you deposit money with a broker you must first make sure that the broker is regulated by an entity such as the CFTC, FCA, ASIC or the IIROC. Remember not all regulatory bodies are created equal. For example, if the broker that you are interested in has only a CySEC (Cyprus) regulation it would be wise to steer clear. Although they have gotten tougher on rulebreakers, CySEC is still lax in numerous areas. Additionally, do your research. This means reading reviews, looking at various forums, and so on. It is not enough that the broker you are interested in has a regulation. You must vet them. If you have fallen victim to a cryptocurrency scam, send a complaint to at [[email protected]](mailto:[email protected]), and we will do our very best to get into contact with you as soon as we can to initiate your funds recovery process. Visit www.fundsrecovery247.com for more information or Contact - [email protected] com.
Binary options, fraudulent “trading products” that are designed to part prospective investors from their money are very different from real options. In essence, they are simply a bet that the price of a particular asset will rise in a given time frame. If you win the gamble, the company is supposed to pay a fixed payout, within the 70%-95% range. If you lose, however, you not only lose the “payout” but the initial investment as well. If this was merely the case this would fall under the category of gambling, something that millions upon millions of individuals do recreationally. However, that is primarily not the case. With almost all binary options brokers you are “trading” against the broker and not the market. The broker wants you to lose, or else the company would not make a profit. Even if the broker pays out your winnings he can easily govern your profit with payout conditions. This means that even if you have a winning formula, the company will just decrease the payout, ensuring you ultimately lose in the long term.
There is more to the scam
That, unfortunately, is not where it ends. Numerous “brokers” are notorious for spreading fictitious stories about their clientele making gigantic profits with trading robots. Almost all of them manipulate their price curves to prevent you from winning. What’s worse is even if you do win, many of them refuse to pay out, and ultimately drop off the face of the earth (with your money). Now clients are left in with a major dilemma. To whom do they turn? To the police? To regulators? The answer to these questions is that it depends. Most of these binary options brokers are not regulated and are located offshore, allowing them to do what they want. Often in their terms and conditions, they concoct various rules that ensure they keep your money once they have it. When it comes to regulators such as ASIC or the FCA they are relatively useless as they cannot shut down the actual binary options websites and to make it even worse search engines such as Google allow these websites to appear in their search content.
Shouldn’t the banks put a stop to this?
Yes, they should. However, the banks, which should be the number one line of defense against these scams either do not know the extent of the problem or are turning a blind eye to their nefarious activities. Additionally, in order to process credit card, debit card payments most of the binary options brokers have registered a small company in an E.U. country.
Unfortunately, fraud encourages more fraud. Various individuals targeted U.S. citizens who were swindled by the now-defunct brokerage, Banc de Binary, and a few other binary options companies that were being sued by the SEC or the CFTC (Commodity Futures Trading Commission). They impersonated SEC officials as part of an advanced-fee fraud scheme in which they deceived victims into forwarding them money. Approximately 95 individuals were targeted by this despicable scheme and 25 of them sent 235 thousand dollars in total to these swindlers. What to Do if You Have Been Scammed If you have fallen victim to a cryptocurrency scam, send a complaint to at [[email protected]](mailto:[email protected]), and we will do our very best to get into contact with you as soon as we can to initiate your funds recovery process.
List of Binary Option Brokers accepting traders from the USA: Rank Broker Offer Trade Now / Review; 1. 🏆 NADEX is one of the only CFTC regulated exchanges offering binary options. Regulated in the UK, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads. This will also help you to assess whether the platform is complying with U.S. Jared J. The ... Binary Options; Brokers; CFTC Requests Entry of Default Against Binary Options Gang; CFTC Requests Entry of Default Against Binary Options Gang Yossi Herzog, Yakov Cohen and Shalom Peretz, as well as Yukom CEO Lee Elbaz, were sued in this case since. Aziz Abdel-Qader Brokers (Binary Options ) Tuesday, 07/07/2020 21:56 GMT+2 2020-07-07T19:56:33+00:00 2020-07-21T10:31:49+00:00. Photo: FM ... Blacklisted Brokers (CFTC) Get Justice & Claim Your Money Back Now ! Free Consultation ! Get Help Now ! 0-9. 1Billion Forex 2 Options 33Option . A. AAFX Trading Advanced Options Allgo Trading Anthony, John AOS Holding ASK Options Astercap Ltd. Axetrades Azbinary . B. B&K Investment Banc de Options Barclays Broker Barkley Capital Bartle Investment Group BeeOptions Big Option Binary Book Binary ... CFTC Hits Binary Options Marketer Peter Szatmari with $14M Fine The case was related to prior CFTC actions alleging fraud against several other individuals and entities. Aziz Abdel-Qader Brokers (Binary Options ) Tuesday, 13/10/2020 18:48 GMT+2 2020-10-13T16:48:26+00:00 2020-10-20T11:06:21+00:00. Photo: FM . Share this article. Finance Magnates Telegram Channel; US securities regulator ... The CFTC sought a motion against Peter Szatmari, who worked as a binary options marketer and defrauded investors of $3.8 million. The Hawaii District Court has granted the clerk’s entry of default motion by the regulator as the defendant has consistently failed to respond to the complaint lodged against him. The regulator wanted him to be declared a default because he has neither appeared in ... Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the CFTC or SEC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet- based trading platforms that are not necessarily complying with applicable U.S ... The CFTC alleges that Daniel Fingerhut, a resident of Miami Beach, Florida, created and disseminated fraudulent solicitations related to binary options on behalf of AIP. Between October 2016 and August 2018, Fingerhut managed the marketing at DPI and at its related entities, DPL and Huf, and created, disseminated, and oversaw others creating and disseminating fraudulent solicitations related ... “The CFTC’s complaint alleges that from March 16, 2017, through February 21, 2018, Butler and NCI unlawfully solicited and accepted at least $300,000 from more than 65 members of the public to trade binary options contracts on the North American Derivatives Exchange (Nadex), defrauded those customers, and operated as an unregistered commodity pool operator (CPO) and an unregistered ... In essence CFTC binary options trade just like a spread or a CFD. They have a maximum loss, the purchase price, and a maximum gain, $100, which is very binary, and up until expiry value is pinned to the movement of the underlying asset. *** We’ll soon publish more articles regarding US style and CFTC binary options trading, as regulation continues to evolve. Stay Tuned! [CFTC] posted in ... Binary options — a yes/no position on a future market condition — can be traded on registered U.S. exchanges. But there are many other websites, social media posts, advertisements or online videos that promote unregistered binary options trading platforms. Many times these platforms are operated by offshore companies that are committing fraud. Learn how these frauds work and how to protect ...
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