CFTC adds to its complaint against Banc de Binary

[AsstModerator]

CFTC adds to its complaint against Banc de Binary​

The CFTC has added into its previous complaint against Banc de Binary. It also has specifically named Oren Laurent as the person behind all the companies.

From the CFTC's website...
May 7, 2014

CFTC Amends Complaint against Banc de Binary, Ltd. to Charge Three Affiliated Corporate Entities with Violating the CFTC’s Ban on Trading Options Contracts Off-Exchange

CFTC Also Charges Oren Shabat Laurent as the Controlling Person of the Corporate Defendants and of the Banc de Binary Common Enterprise

Washington, DC – On June 5, 2013, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil Complaint in federal district court in Nevada against Banc de Binary, Ltd. (incorporated in the Republic of Cyprus), charging it with violating the CFTC’s ban on off-exchange options trading by offering commodity option contracts to U.S. customers for trading, as well as soliciting, accepting orders and funds, or confirming the execution of orders, from U.S. customers (see CFTC Press Release 6602-13). Today, the CFTC is announcing that on May 6, 2014, it filed an amended Complaint in this action (see Related Links), charging three corporate affiliates of Banc de Binary, Ltd. – E.T. Binary Options Ltd. (incorporated in Israel), BO Systems Ltd., and BDB Services Ltd. (both incorporated in the Republic of Seychelles) – also with violating the CFTC’s ban on off-exchange options trading by offering commodity option contracts to U.S. customers for trading, as well as soliciting, accepting, or confirming the execution of orders from U.S. customers during the period from May 2011 through at least March 2013.

In addition, the CFTC’s amended Complaint adds Defendants E.T. Binary Options Ltd. and BO Systems Ltd. to the charge that they, and Banc de Binary, Ltd., operated as unregistered Futures Commission Merchants (FCMs) during the period from July 2011 through at least March 2013.

Finally, the amended Complaint charges that during the relevant period Oren Shabat Laurent, a citizen of the U.S. and Israel, controlled the Banc de Binary common enterprise and, thus, is liable for the corporate Defendants’ alleged violations of the Commodity Exchange Act and the CFTC’s Regulations.

The amended Complaint charges that all four of the corporate Defendants operated as a common enterprise, each one individually and collectively, operating under the trade name “Banc de Binary.” The amended Complaint charges that these corporate Defendants, individually and/or as part of the Banc de Binary common enterprise, operated an online trading website permitting U.S. customers to trade binary options products prohibited by the CFTC’s ban on off-exchange options trading.

Through the website bbinary.com (and affiliated websites), the Banc de Binary common enterprise allegedly unlawfully solicited and permitted U.S. customers to buy and sell options betting on the prices of wheat, oil, platinum, sugar, coffee, corn, foreign currency pairs, and stock indices and did not limit its options offerings to eligible contract participants, allowing U.S. customers to trade without requiring any information about their trading history or net worth.

In its continuing litigation against the Defendants, the CFTC seeks civil monetary penalties, and other remedial ancillary relief, including restitution, disgorgement, and rescission and a permanent injunction preventing the Defendants from engaging in certain commodity options activity with U.S. customers.

CFTC Division of Enforcement staff members responsible for this case are David S. Slovick, Margaret Aisenbrey, Jessica Harris, Mary Lutz, Kathleen Banar, and Rick Glaser.

* * * * *

See Binary Options Customer Fraud Advisory

The CFTC’s Office of Consumer Outreach and the Securities & Exchange Commission’s Office of Investor Education and Advocacy issued a Consumer Alert to warn about fraudulent schemes involving binary options and their trading platforms. The Alert warns customers that the perpetrators of these schemes allegedly refuse to credit customer accounts, deny fund reimbursement, commit identity theft, and manipulate software to generate losing trades.

Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.


Click here to see the original version of this press release at the CFTC

Discussion thread about the initial charges against BDB by the CFTC

Discussion thread about CFTC-SEC fraud alert concerning Binary Options

FPA Review page for BancdeBinary

 

[AsstModerator]

I think I should also mention that Oren Laurent threatened to sue the FPA. He wanted me to remove negative posts clients made about Banc de Binary.

 

[claretblue]

Nice. I remember well, being bombarded with spam emails, urging me to sign up with them. Some of their "affiliates" were even offering a free system that would guarantee winning bets every time. Yeah. . .right. I refused their generous offer.

 

[liarslayer]

I think I should also mention that Oren Laurent threatened to sue the FPA. He wanted me to remove negative posts clients made about Banc de Binary.

I really hope they get this guy good. It was always and still is my hope to see this guy and his motley crew on an episode of American Greed telling the story of how he got 10 years in prison.

This company has hurt many people with their racketeering and extortion techniques.

I for one am trying to get back $45,000 and I know one other gentleman in Australia who lost $55,000 in 20 minutes by listening to a Banc De Binary broker giving him reckless trading advise while in a losing trade. (Had him double up twice on a huge trade).

 

[Pharaoh]

There's something to keep in mind with all binary brokers. They don't have liquidity providers. This means they are bucketshops that keep all trades in house. So, any winnings they pay out come out of their bottom line. 100% of their other expenses, including the salary of that "expert" who is advising you on that "sure to profit" trade, come out of client losses.

 

[liarslayer]

I believe you Pharaoh and what's worse is when I questioned 24option about this fact the broker assured me up and down and sideways that they had 700 banks that all help with their liquidity. Something else, I was upset a little while back about a trade expiry time. So they showed me on the platform where I could see the actual expiry price , bid/ask/spot to the 1/2 second. I looked and was satisfied . I then asked where I can see the same thing for the entry price.
No response. I have had fills so far out of the money that it doesn't even show up on the OHLC time bar and the trade (was in the right direction). I complained about it and got into a bit of a heated debate after losing a series of back to back trades totaling over $8000. All of a sudden all my trades were at the money on entry. Go figure.

 

[tommbstone]

BDB closed its doors to usa peeps and when they did they kept my $450 and ignored all emails after they claimed they sent it back to my bank. Uh yeah no money ever came into my bank. Thieves.

 

[Jussar]

That looks like a serious problem! I'm glad this scammers has been caught.

 

[Pharaoh]

They haven't been completely caught, they've only been charged. There's still a pile of legalities to go through before this issue reaches some sort of conclusion.

Personally, I hope that conclusion involves some prison sentences.

Tommbstone, I hope you've filed a report with www.CFTC.gov as well as eConsumer.gov

 

[John Sachman]

Some story, and one to follow. Just shows you how careful you need to be.