Securities Attorneys Lawyers Helping Investors Recover Losses
VICTIMS OF BINARY OPTIONS, WIRECARD, GREY MOUNTAIN MANAGEMENT (GMM) SCAM?
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According to https://fintelegram.news/ is The Cartu brothers, founders of Greymountain Management Ltd come from the online casino space and evolved their business into the binary options business.
Their partnership with Wirecard started in 2014. But how did legitimate companies get involved with them, including American banks?
Per Wikipedia, a binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange).
In September 2019, The Securities and Exchange Commission charged three foreign individuals, Gil Beserglik, Raz Beserglik and Kai Christian Petersen, with deceiving U.S. investors, including vulnerable retirees, and causing them to lose tens of millions of dollars through fraudulent, online sales of high-risk securities known as binary options.
According to the SEC's complaint, the defendants conned U.S. and foreign investors out of tens of millions of dollars through three online binary options brokers, Bloombex Options, Morton Finance and Starling Capital, by the allure and promise of quick profits.
The SEC alleges that defendants utilized call centers in Germany and Israel which operated as "boiler rooms," in which salespersons used high pressure sales tactics to offer and sell speculative binary options to vulnerable investors. Employees at these call centers allegedly persuaded investors to open binary option trading accounts and deposit large sums into those accounts.
According to the complaint, call center employees lied to investors about their names, location and expertise in trading securities and they falsely told investors that the brokers only earned money if investors made money. In reality, the brokers earned money only from investor losses and thus had no incentive to advise investors on how to trade binary options profitably. The complaint alleges that most investors who traded binary options through the three brokers lost money, and some individual retirees lost their entire savings amounting to hundreds of thousands of dollars. The SEC also alleges that the brokers largely refused to honor investor requests to withdraw money from their trading accounts.
Our clients used their credit cards to trade.
"For some victims, this international scheme cost them their entire life savings," said Melissa R. Hodgman, Associate Director in the SEC's Enforcement Division. "This action reflects the SEC's continued pursuit of those that drain the retirement accounts of vulnerable investors, including those who perpetrate their fraud from abroad."
The SEC's complaint, filed in federal district court in central California, charges Gil Beserglik, Raz Beserglik and Kai Christian Petersen with violating the anti-fraud and registration provisions of the federal securities laws, and seeks disgorgement of ill-gotten gains, prejudgment interest, financial penalties and permanent injunctions against all three defendants.
Following an investigation by The Times of Israel, Israel's cabinet approved a ban on sale of binary options in June 2017, and a law banning the products was approved by the Knesset in October 2017.
On January 30, 2018, Facebook banned advertisements for binary options trading as well as for cryptocurrencies and initial coin offerings (ICOs). Google and Twitter announced similar bans in the following weeks.
Grey Mountain Partners Fund III, L.P. registered with the U.S. Security and Exchange Commission in 2013 and incorporated in the state of Delaware. For financial reporting, it provided a Prospectus, Current Reports, 8-K, 10K, and Annual Reports.
Binary Options can be legitimate, investments but because of their relative complexity, are ripe for fraud. Scammers see low hanging fruit.
Binary options may be used in theoretical asset pricing, but they are prone to fraud in their applications and hence banned by regulators in many jurisdictions as a form of gambling. Many binary option outlets have been exposed as fraudulent.
The U.S. FBI is investigating binary option scams throughout the world, and the Israeli police have tied the industry to criminal syndicates. The European Securities and Markets Authority (ESMA) have banned retail binary options trading. Australian Securities and Investments Commission (ASIC) considers binary options as a “high-risk” and “unpredictable” investment option.
The FBI estimates that the scammers steal $10 billion annually worldwide.
While binary options may be used in theoretical asset pricing, they are prone to fraud in their applications and hence banned by regulators in many jurisdictions as a form of gambling. Many binary option outlets have been exposed as fraudulent. The U.S. FBI is investigating binary option scams throughout the world, and the Israeli police have tied the industry to criminal syndicates. The European Securities and Markets Authority (ESMA) have banned retail binary options trading. Australian Securities and Investments Commission (ASIC) considers binary options as a “high-risk” and “unpredictable” investment option.
US Securities and Exchange Commission (SEC) and the U.S. Commodities and Futures Trading Commission (CFTC) charged the perpetrators behind the All In Publishing (AIP) binary options marketing scheme and fined them with more than $65 million.
According to Fintelnews, The perpetrators operated a fraudulent affiliate marketing scheme (All In Publishing or AIP scheme) promoting and selling unregistered binary options brokers in exchange for a commission for each sale. They received between approximately $350 and $450 for every investor who viewed their materials and then opened and deposited money with a binary options scheme.
According to the CFTC, the AIP scheme conducted at 29 fraudulent binary options marketing campaigns in which they fraudulently solicited tens of millions of prospective customers to open and fund illegal, off-exchange binary options trading accounts.
Running their AIP Scheme, the perpetrators defrauded some 68,000 US victims and violated several sections of the Securities Exchange Act and the Commodity Exchange Act.
The AIP scheme campaigns included professional videos (see featured video) that touted a free software trading program running on autopilot that was supposedly capable of generating large profits for investors. These videos purported to show actual investors and real results, including people enjoying rich lifestyles achieved through binary options trading, and “live” demonstrations of people opening and funding accounts in “real-time” and seeing their trading balances increase automatically. The participants in the videos insisted to viewers that these were actual events.
Yet what was depicted was entirely fiction. Paid actors pretended to be recent millionaires; fake testimonials claimed falsely that there was great wealth made by investing in, and using the free trading software to purchase binary options, The fabricated photos showed only fictional account statements. The “live” demonstrations of profitable trading were shams.
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You probably saw an add, or recieved a mailing promising you guaranteed riches. How, by working with brokers to trade international currencies at the click of a button. Trading binary options are supposed to be the is one of the simplest methods of making money. How? Binary options let you predict the price movement of a currency pair over a set period of time. For example, if you are speculating that the European euro (EUR) will rise in value against the U.S. dollar (USD) in the next minute, you can invest in a call option for the EUR/USD currency pair. If you are right, your binary option contract will settle for $100 and you get your money back with an earned profit of $100, minus the price of the contract. And if the bid falls below your strike price, you will lose all of your invested money in 60 seconds.
If you're a hard working investor, you thought you'd start small and study. Online classes tout partner trading sites to help you achieve your personal trading goals.
Binary options university claim to take you step-to-step guide to the intriguing world of binary options trading. But like other online schemes, they're designed to lure you in.
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