CFTC Charges Operator of Three Binary Options Brands with Fraud

The US Commodity Futures Trading Commission (CFTC) today charged the operator of Option Mint, Option King, and Option Queen brands in a case involving a fraudulent binary options scheme.‎

Ohio resident Jared Davis has been arrested and charged for allegedly defrauding investors through an elaborate international scheme that the CFTC says he ran out of Sandusky between 2012 and 2016. Davis was taken into custody by agents from the FBI and the IRS at Cleveland Hopkins International Airport back in June 2018.

The CFTC filed its complaint in the US District Court for the Northern District of Ohio charging Davis and his entities with fraud relating to the scheme involved over $10 million in fraudulent solicitations. Now, the agency wants penalties, disgorgement of ill-gotten gains, and permanent injunctions.

According to the regulator, Davis is indicted on two separate cases that carry over 20 charges, including wire fraud, Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term, obstruction of justice, tax evasion and other crimes.

False names and qualifications

The court papers show that he was the leader of a binary options scheme that operated under various trade names, all tied to a firm called Erie Marketing LLC. Not only Davis’ business was not registered with the US relevant regulators, but also he wasn't connecting investors to a legitimate Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. Instead, he was taking the opposite position, making money only when his investors lost money, similar to a casino or sports bucks.

Davis’ employees also falsely guaranteed profits, lied about their professional qualification, and misrepresented trading terms such as bonuses and risk-free trades.

Today’s action is the latest in the US crackdown on binary options operatives after a series of reports uncovered massive fraud in the shady industry that had been centered in Israel. Last month, Lee Elbaz was convicted by a federal jury in connection with a vast binary options scheme to defraud investors all over the world. The fraud perpetrated by Yukom CEO, however, was more extensive and widespread as they swindled nearly 75,000 investors out of more than $145 million.