Brother of Binary Options Scammer Seeks Relief for His Seized House

Eric Shah, the brother of Israeli-American binary options operator Michael Shah, has applied to the court to defend his stake in a house the government seized in 2019.

Eric Shah argues that he owns 50 percent in a homestead that was among assets frozen by the court in connection with a binary options fraud.

“Further, he resides in the property as his protected constitutional homestead under Florida law. He therefore has a direct, substantial and legally protectable interest in the outcome of the Receiver’s Motion for Constructive Trust,” the legal notice states.

The filing also states that primary defendants in this case, online advertiser Michael Shah and his company Zilmil, Inc filed their response to the ‘Motion for Constructive Trust” one day before Eric moves to protect his shared house.

Fraudulent campaigns to promote binary options systems

Eric’s brother was hit with over $22 million penalties for defrauding his American victims through numerous binary options websites, as well as violating the Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act. Shah, who worked in tandem with call centers in Israel in return for large commissions, sent traffic to binary options sites including LBinary, TraderXP, Trade Rush, Banc de Binary and OptionRally.

The CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term originally asked the court to order the defendants to pay back over $75 million in fines and penalties.

The penalties, in this case, were the largest the US authorities have imposed so far against binary options operators. The case unfolded in 2018, just as Finance Magnates exclusively reported on a major crackdown by the US regulators against the binary options industry.

The court papers show that the fraud scheme had been going on since at least 2013 through July 2017, and involved fraudulent ad campaigns that relied on other marketers. They attracted their victims by sending misrepresentations about the trading platforms, also paying video producers to make fraudulent testimonials promoting the trading systems.