Israeli lawyer
CombatScam.com and CarmonLaw.com Rep
- Messages
- 35
The Pan-European financial regulator European Securities and Markets Authority (“ESMA, “) has announced a three-month temporary rule banning the sale of binary options in the European Union and restricting leverage on Contracts for Differences (“CFD”). The ESMA is likely to extend the new rules beyond the three-month temporary ban.
The ban on binary options is effective as of July 2, 2018 and prohibits the marketing, distribution or sale of binary options to retail investors.
The ban on Contracts for Differences, effective August 1, 2018, and restricts the marketing, distribution or sale of CFD’s to retail investors. This restriction consists of: leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a firm specific risk warning delivered in a standardized way.
What does this mean for you, the individual “investor” in binary options? Your broker, who no longer has the opportunity for new clients in the U.S., Canada and EU member states – to name just a few of the countries now banning the sale of binary options, might now close shop to lick his wounds and laugh all the way to his bank to gloat on the millions he had already made. Under these circumstances, your chances of withdrawing whatever is left from your “investment” are slim. You might expect sudden silence from the broker, a failure to respond to your withdrawal requests, or a long list of bureaucratic demands to “identify” you, and then silence again.
What should you do? Sue them? Who exactly? A company without assets incorporated in a palm tree tax shelter country without real regulations? Sue the principals or the salespeople you know are using “stage names” as if they were in a Hollywood movie, but in fact are hiding behind fictitious names to mask their preconceived intent to defraud you? Can you sue them in London, the location they told you their main office is located? Don’t bother. They are not in London, but in Israel, Cyprus or in Bulgaria, to name just a few of their favorite locations. Go find them.
When the binary options hype was peaking, and many new “investors” were joining every day, the brokers made efforts not to be exposed to public shaming and criticism that could deter new “investors.” Therefore, in some instances they opted to repay insistent disgruntled “investors” to guarantee their silence in meticulously worded release agreements. But now, when they are unlikely to be able to continue selling binary options, they don’t care if you shame “Joe Smith”, a nonexistent person, operating “The Best Binary Options Broker”, a company soon to fold.
So, what is your best recourse? Go after the principals personally.They can hide but cannot run far enough if you know their identity and give it to me. Perhaps it’s time for former employees of the binary options industry to come forward and clean their conscience and identify their employers by their real names. If any of you reading this column are willing – even anonymously – to come forward, please email me at haggai@carmonlaw.com. I’ll take it from there. I’ve been doing it for the past two years, collecting more than US $3 million, without a single day of litigation. Thirty-one years of service to the U.S government in litigation and undercover investigations worldwide (outside the U.S.) trained me for the task.
You may contact Haggai Carmon at CombatScam.com and CarmonLaw.com
Specializing is cases $100,000 and above.
