The SEC has charged Lior Babazara and Anton Senderov, owners of the companies LBinary and Ivory Option, with operating an illegal binary options scam and defrauding over 2 800 American citizens. In total, these scammers managed to take $5 million from innocent victims.
And old saying goes: If it exists, someone will make money out of it. Sadly, that saying doesn’t specify the legality of it, and in the financial sector, there’s a lot of money moving around. It’s easy for someone to think they’ve got a perfect crime and start a fraud operation. The most well-known fraud scams would be Ponzi schemes and pyramid schemes, but there are many, many more. These things range from the smallest begging scam to something like this: A binary options scam.
The SEC had stated that these two scammers had operated a call center, a so-called boiler room, that called investors without any form of prompt. This call center was based in Ramat Gan. The company they sheltered under was called LianTech Finance Marketing, Ltd. and tried to sell investors a very misleading deal in an attempt to steal their money.
This charge has been laid bare in the federal district court of Washington’s Eastern District. It explains that many investors have lost considerable amounts of money due to the call center’s misdirection and outright lies. Some investors even lost their entire savings due to the scam, thanks to the call center operators using false information to encourage overinvestment within their binary options. Even worse, these two men refused to allow investors to withdraw their money from the investment platform.
As expected, both LBinary and Ivory’s employees were encouraged to lie about their experience in the financial sector. They were, in fact, making money whenever the investor lost money, but they stated the opposite to investors to encourage them to follow their intentionally bad suggestions. Coupled with that, their names and locations were lied about, and their titles were lied about. Everything was falsified to induce a false sense of security within the prospective investor.
A Fair Word of Warning
There will always be schemes like this. It’s not something you can avoid, regardless of what business you’re in. This is especially true in the financial sector, where large amounts of money flowing through just make the idea of taking advantage of investors a highly attractive one.
Entities like the Securities Exchange Commission (SEC) will always try their best to keep the world in check of these scammers. However, all they can do is shut down operations that have already started.
Please stay vigilant in any form of investment you do, regardless of type. Research any investment thoroughly before you dive into it, and always be suspicious of so-called “cold calls”: Unprovoked offers of “amazing” deals.
A rule of thumb would be to imagine the old Nigerian Prince offering you things like that. If you’re not suspicious by then, then you should learn to be.