CFTC Orders Individuals to Pay $7 Million in a Binary Options Fraud Case

Wednesday, 17/11/2021 | 21:17 GMT by Felipe Erazo
  • The defendants from Miami, Florida and Israeli are accused of being involved in the fraudulent scheme.
CFTC Orders Individuals to Pay $7 Million in a Binary Options Fraud Case
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The US Commodity Futures Trading Commission (CFTC) announced on Wednesday that the US District Court for the Southern District of Florida issued orders granting permanent injunctions against a Florida man and foreign defendants for their involvement in a fraudulent binary options and crypto scheme.

According to the press release, Daniel Fingerhut, a resident of Miami, Florida, and Itay Barak, Tal Valariola and Digital Platinum Limited (DPL) from Israel are required to pay $7 million in disgorgement and civil monetary penalties for violations of the CFTC regulations. In addition, Fingerhut, Barak and Valariola were banned from performing trading activities and filling for registrations.

Court documents say that defendants are accused of fraudulently soliciting ‘tens of millions of customers’ and prospects to open and fund binary options and crypto trading accounts, which were operated through unregistered brokers.

“The orders find that Fingerhut, Barak and Valariola created, disseminated and/or facilitated the use of fraudulent solicitations in emails, websites and video sales letters promising free access to purportedly successful automated trading systems that traded on behalf of clients in binary options involving commodity interests and digital assets. These solicitations misrepresented hypothetical and fictitious trading results as real results and used fabricated customer testimonials,” the CFTC noted.

Also, the authorities are litigating the matter against two entity defendants and one relief defendant. The CFTC pointed out that the Israel Securities Authority and the Financial Supervision Commission of Bulgaria assisted in the investigation.

Recent Fraud Cases

Last month, the CFTC filed a civil enforcement action against Abner Alejandro Tinoco and his company Kikit & Mess Investments, LLC for misappropriating investors’ funds. The Texas man has solicited and misappropriated more than $3.9 million. The agency detailed that the alleged perpetrator has been running the scheme since at least September 2020.

He managed to gather the funds from at least 61 clients with assurances of managing their customized trading portfolios in foreign Exchange (Forex ) and cryptocurrency investments.

The US Commodity Futures Trading Commission (CFTC) announced on Wednesday that the US District Court for the Southern District of Florida issued orders granting permanent injunctions against a Florida man and foreign defendants for their involvement in a fraudulent binary options and crypto scheme.

According to the press release, Daniel Fingerhut, a resident of Miami, Florida, and Itay Barak, Tal Valariola and Digital Platinum Limited (DPL) from Israel are required to pay $7 million in disgorgement and civil monetary penalties for violations of the CFTC regulations. In addition, Fingerhut, Barak and Valariola were banned from performing trading activities and filling for registrations.

Court documents say that defendants are accused of fraudulently soliciting ‘tens of millions of customers’ and prospects to open and fund binary options and crypto trading accounts, which were operated through unregistered brokers.

“The orders find that Fingerhut, Barak and Valariola created, disseminated and/or facilitated the use of fraudulent solicitations in emails, websites and video sales letters promising free access to purportedly successful automated trading systems that traded on behalf of clients in binary options involving commodity interests and digital assets. These solicitations misrepresented hypothetical and fictitious trading results as real results and used fabricated customer testimonials,” the CFTC noted.

Also, the authorities are litigating the matter against two entity defendants and one relief defendant. The CFTC pointed out that the Israel Securities Authority and the Financial Supervision Commission of Bulgaria assisted in the investigation.

Recent Fraud Cases

Last month, the CFTC filed a civil enforcement action against Abner Alejandro Tinoco and his company Kikit & Mess Investments, LLC for misappropriating investors’ funds. The Texas man has solicited and misappropriated more than $3.9 million. The agency detailed that the alleged perpetrator has been running the scheme since at least September 2020.

He managed to gather the funds from at least 61 clients with assurances of managing their customized trading portfolios in foreign Exchange (Forex ) and cryptocurrency investments.

About the Author: Felipe Erazo
Felipe Erazo
  • 1036 Articles
  • 43 Followers
About the Author: Felipe Erazo
Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.
  • 1036 Articles
  • 43 Followers

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