The US Commodity Futures Trading Commission, or CFTC, has continued its crackdown on various binary options trading frauds. On the 5th of May, 2020, the regulator filed a complaint against many entities and individuals. The complaint claimed that these individuals were working in tandem in a large-scale international binary options fraud scheme.
Two Major Operations
The lawsuit itself was filed within the Southern District Court of Florida. Within it, it showed that the CFTC targeted scams based in the US, Bulgaria, and Israel. The list of defendants includes names like Aicel Carbenero, Itay Barak, Digital Platinum ltd, Digital Platinum Inc, Huf Mediya, Daniel Fingerhut, as well as Tal Valariola.
According to the complaint, two solicitation scams occurred during October of 2013 and continued through to at least August of 2018, referred to as the Relevant Period. These scams involved other binary options, as well as various digital assets like Ethereum and Bitcoin, according to the CFTC. The regulator stated that the two shams had two periods. The Binary Options Period occurred from at least October of 2013 to November of 2016, with the Digital Assets Period occurring from October of 2016 to August of 2018.
Full-Scale Binary Options Fraud
Within the Binary Options Period, Itay Barak and Tal Valariola both operated through digital Platinum Limited, or DPL. There, they aided and abetted a binary options affiliate marketing scam going by All In publishing LLC, or AIP. This scam involved tens of millions in individual solicitations to various prospective customers.
These solicitations advised them to open and otherwise fund off-exchange binary options trading accounts. These accounts involved themselves in everything from metals to Forex, to and/or swaps, doing so through unregistered off-exchange binary brokers’ websites.
These websites, in turn, paid both DPL and AIP for commissions. AIP, in particular, offered free access to a trading system that automatically traded binary options on the customers’ behalf through their solicitations. This would be enabled once the clients opened and funded an account within the broker AIP was recommending.
All Parties Partook In Fraud: CFTC
The marketing scheme for AIP involved a minimum of 24 individual binary options scam campaigns. DPL aided and abetted this matter by providing the group with fraudulent sales videos wilfully. They procured these videos for the campaigns of AIP, knowing fully that the AIP solicitations that they themselves have made contained misleading or false statements.
Furthermore, they shared these fraudulent solicitations to brokers, as well as encouraging various brokers to use deceptive or incorrect information in their own solicitations. According to the CFTC, they supplied trading systems they were aware did not work as marketed, and acted as an intermediary with brokers, as well. Furthermore, the CFTC claimed they managed funds that came from these various campaigns.