1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

The CFTC files fraud charges against 2 more binary scams

Discussion in 'Forex Articles' started by AsstModerator, Mar 17, 2016.

  1. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

    Joined:
    Dec 11, 2007
    Messages:
    5,429
    Likes Received:
    1,126
    The wheels of justice are slow, but I think they are showing signs of speeding up. Not only is the CFTC filing charges, but the details published show larger cooperation in the efforts to deal with binary scammers. The CFTC worked with Cysec, the Ontario Securities Commission, and the Israeli Securities Authority. Remember this the next time someone says not to bother filing a complaint with regulators.

    Among other scams, Vault Options and Global Trader 365 offered fraudulent "insurance" against trading losses and also demanded payments of addition funds as a pre-condition to paying back initial deposits. Both of these are becoming standard scams used by many binary brokers.

    Based on the CFTC's charges, the FPA now considers Vault Options and Global Trader 365 to be Scams. This can be overturned only if the companies fully satisfy all of the charges brought against them, reimburse all clients any funds owed, and end any fraudulent or deceptive practices.

    Here is the text of the CFTC's Press Release...

    RELEASE: PR7341-16
    CFTC Enforcement
    March 15, 2016

    CFTC Charges Two Binary Options Firms with Fraud, Illegal Off-Exchange Activity, and Operating in an Unregistered Capacity

    Washington, DC
    – The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal district court has unsealed a civil Complaint that the CFTC filed with the Northern District of Illinois on February 2, 2016, against two foreign web-based binary options firms, Vault Options, Ltd. (Vault) and Global Trader 365 (GT 365), both Israeli web-based companies. The CFTC’s Complaint alleges that the two firms unlawfully solicited and accepted more than $1 million from at least 50 U.S. customers to trade off-exchange binary options contracts, defrauded those customers, and operated as unregistered Futures Commission Merchants (FCMs).

    According to the CFTC’s Complaint, since at least October 2012 and continuing to the present, Vault and GT 365 have operated websites through which U.S. customers can buy and sell binary options on various commodities, foreign currency pairs, and stock indexes. The Complaint states that the binary options are two-way directional options that allow customers to make predictive trades as to whether the price of a certain commodity will rise or fall. According to the Complaint, to be lawfully offered in the United States, binary options must be traded on a registered board of trade. However, the Complaint alleges that Vault and GT 365 did not execute transactions on a registered board of trade and neither Vault nor GT 365 has ever been registered with the CFTC in any capacity. As a result, the Complaint charges Vault and GT 365 with operating as FCMs, without being registered.

    In addition to alleging that Vault and GT 365 solicited more than $1 million from at least 50 U.S. customers, the Complaint alleges that Vault and GT 365 defrauded their customers by, among other things, misrepresenting and omitting the likelihood of profit and loss that customer make trading binary options, falsely claiming that customer funds were insured against losses, fraudulently inducing customers to send them more money before initial funds could be returned, and misappropriating customer funds. According to the Complaint, while Vault and GT 365’s websites touted large profits, many customers lost nearly all of their funds sometimes within days or a few weeks.

    The CFTC appreciates the assistance of the Israeli Securities Authority, the Cyprus Securities and Exchange Commission, and the Ontario Securities Commission.

    CFTC Division of Enforcement staff members responsible for this case are Camille M. Arnold, Judith McCorkle, Mary Beth Spear, Heather Dasso, Joseph Konizeski, Scott Williamson, and Rosemary Hollinger.

    * * * * * * *

    See Binary Options Customer Fraud Advisory and the CFTC’s “RED” List

    The CFTC has 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 unlawful schemes allegedly refuse to credit customer accounts, deny fund reimbursement, commit identity theft, and manipulate software to generate losing trades.

    Also, see CFTC Press Release 7224-15, September 9, 2015: CFTC Publishes List of Foreign Entities that Illegally Solicit U.S. Residents to Trade Foreign Currency and Binary Options; The New Registration Deficient ‘RED List’ Identifies Companies Operating Illegally.

    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.


    Link to the original of this Press Release

    FPA Review Page for Vault Options

    FPA Review Page for Global Trader 365
     
    namlem and AnneW like this.
  2. AnneW

    AnneW Master Sergeant

    Joined:
    Jan 14, 2016
    Messages:
    314
    Likes Received:
    115
    I wish that the rest of us globally can be assisted as well .....
     
    JKREISELM and Stung like this.
  3. novatrice1

    novatrice1 Private, 1st Class

    Joined:
    Mar 31, 2015
    Messages:
    66
    Likes Received:
    15
    We can only welcome such news !!!!!!
     
  4. yeamin

    yeamin Recruit

    Joined:
    Mar 17, 2016
    Messages:
    1
    Likes Received:
    0
     
  5. 1000palms

    1000palms Private

    Joined:
    Mar 5, 2016
    Messages:
    18
    Likes Received:
    6
    We need to see more justice against these scammers and cooperatively enforce zero tolerance...
     
    JKREISELM likes this.
  6. F***X

    F***X Sergeant

    Joined:
    Aug 24, 2010
    Messages:
    237
    Likes Received:
    164
    This is good news, these scammers not only give the industry a bad name, but they can hurt the reputation of the country that they operate in. And it could only get worse if they are allowed to continue their game of fraud and deception.
     
    JKREISELM and cgasucks like this.
  7. Stung

    Stung Private, 1st Class

    Joined:
    Jan 20, 2016
    Messages:
    33
    Likes Received:
    11
    If they are deemed fraudulent in one country then why not all the others!!
     
    AnneW likes this.
  8. IrwanI

    IrwanI Master Sergeant

    Joined:
    Apr 4, 2015
    Messages:
    495
    Likes Received:
    141
    hope OptionXO in their next list
     
    Chun Khoo likes this.
  9. ElaineMDG

    ElaineMDG Corporal

    Joined:
    Feb 6, 2016
    Messages:
    119
    Likes Received:
    29
    Woohoo!! 2 more down...????'s more to go! When I first started researching trading, I had several friends tell me they'd "heard" that Binary Options were easy, required low capital, and profitable. My first searches on Google & YouTube proved they're also full of scammers. I was then told by a couple of reputable traders that Binary Options are no different than casino games. I think I'll stick with learning as much as I can about Forex-and possibly some equity investing later on. If I wanted to play a casino game, there's a really nice one about 30 minutes from here-but in the 12+years I've lived here, I've never been...
     
  10. Thandi Martin

    Thandi Martin Private, 1st Class

    Joined:
    Oct 27, 2015
    Messages:
    61
    Likes Received:
    17
    Good job.Binaryuno is next.
     

Share This Page