U.S. Regulators Move on Several Fraudulent Trading Companies.


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The American regulator Commodity Futures Trading Commission (CFTC) has demonstrated a thorough and robust attitude to rooting out and prosecuting fraudulent binary options trading. On Monday 10 July 2017 CFTC complaint against Californian Jason Scharf was unsealed and it was announced that Mr. Scharf was to be charged with “illicitly referring clients to binary options brokers via several offshore businesses”.

Mr. Scharf’s companies include CIT Investments LLC in Nevada, Brevspand EOOD in Bulgaria, CIT Investments Ltd in the Marshall Islands, CIT Investments Ltd in Anguilla and A & J Media Partners, Inc. The CFTC also contends that Mr. Scharf colluded with a firm of marketers, Michael Shah and his company Zilmil, to promote his business dealings. Mr. Scharf further spread his activities to doing
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business through two other entities.

It is believed that up to 16 Million dollars was illegally solicited from individuals in the US through fraudulent binary options contracts. An order for a preliminary injunction against the defendants has been scheduled in the courts on 26 July 2017.
The CFTC’s Director of Enforcement, James McDonald, reiterated that the CFTC is totally committed to prosecuting and eradicating binary options fraud in the US markets; commenting that the fraud was massive and hoping that the message would reach any would-be fraudsters that such conduct would not be tolerated in America.

The fraud alleged to have been perpetrated by Mr. Scharf and his cohorts seems to have followed a commonplace format which has been seen many times by the lawyers at Giambrone in the past, in that unrealistically enlarged profits were promised bolstered with assertions that there were “guaranteed returns”. They urged interested parties to open trading accounts, presenting false testimonials to support the illusion of the expertise of the company. Once accounts had been opened and the target had passed money into them the reality was that the target was never to see their money again. The funds were sent on a journey through numerous foreign companies into assorted overseas accounts aimed at preventing the discovery of the final resting place of the funds.

AUTHOR: Joanna Bailey

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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

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