Receiver appointed in case against binary options scheme operator

Justin Freeman
Receiver appointed in case against binary scheme operato

A court in the US state of Florida has announced the appointment of a temporary receiver in a case against people and firms accused of participating in a fraudulent binary options scheme.

The court said that Melanie Damian from Damian & Valori LLP would take on the role in the case, which is being brought in part by the Commodity Futures Trading Commission (CFTC).

The CFTC is currently bringing a fraud case against a number of individuals in relation to the case, including a man named Daniel Fingerhut as well as two people from Tel Aviv – Itay Barak and Tal Valariola.

The three are accused of running a firm called Digital Platinum Limited (DPL).

They are also associated with firms called Digital Platinum, Inc. (DPI) in the US and Huf Mediya Ltd. (Huf) in Bulgaria.

Binary options schemes induce traders to select from just one option or another when speculating on a particular outcome.

The practice has been widely discredited by the wider industry, with many leading figures advising against its use.

The charges were first brought about earlier this year.

At the time, the CFTC released a number of serious accusations against the defendants in relation to the case.

It claimed, for example, that the alleged crimes took place over a time span of five years or so.

“According to the complaint, beginning in at least October 2013 and continuing through August 2018, the defendants allegedly created fraudulent marketing materials which promised astronomical profits with no risk of loss and disseminated them via email spam and by making videos available online,” it said.

It went on to claim that well over 50,000 people set up accounts for trading purposes.

It added: “Over 59,000 customers opened and funded trading accounts as a result of these fraudulent marketing campaigns, which generated payments of over $20 million in commissions to the defendants.

“According to the complaint, the marketing materials touted fake trading performance using advertised binary options and digital asset trading software and systems.

“The marketing videos typically featured actors – often posing in front of props such as mansions and private jets – who falsely claimed they had become rich trading.”

However, thanks to the court’s latest order, the new development means that Melanie Damian will now be responsible for some aspects of managing property belonging to the defendants.

The CFTC, however, has gone further than just direct financial crime in the scope of its allegations.

In its press release regarding charges earlier this year, the major regulator also accused Fingerhut of being false or misleading – despite having sworn an oath to tell the truth.

“The complaint also charges Fingerhut with making materially false or misleading statements to CFTC staff, including while under oath, in an apparent effort to conceal the extent of his role in the fraud and to avoid producing documents,” it said.

“The complaint is related to a previously filed multi-million dollar retail binary options fraud action,” it added in the statement.


Justin Freeman

Latest news

Be Wary of Phony Lawyers Pushing Fraudulent Forex Recovery Scams
Have you ever lost money because of a crooked forex broker? Have you regretted those losses until a nice lawyer called you on the phone and promised the recovery of your losses for no upfront fees? Hope does spring eternal in these situations, but, unfortunately, the lawyer is a phony. Read more
Cybercrime still on the rise – be wary of potential scams
While our attention may be drawn to the latest news regarding the COVID-19 pandemic or the Tokyo Olympic Games, cybercrime statistics continue to grow unabated in the shadows. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
4.9
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    City Index Logo
    IQ Option Logo
    IC Markets Logo
    skilling logo
    Vantage FX logo
    AvaTrade logo
    ATFX Logo
    Pepperstone
    Plus500 Small Logo
    LegacyFX Small Logo
    XM Logo
    BlackBull Markets Logo
    OctaFX Logo
    Forex.com Logo
    Exness Small Logo
    FXTM Logo