The Commodity Futures Trading Commission (CFTC) has secured a victory in its pursuit of justice against fraudulent binary options operators. The US District Court for the Western District of Texas has entered a final judgment against Jonathan Cartu, Leeav Peretz, Nati Peretz, believed to be residents of Israel, and Blue Moon Investments Inc., a Seychelles corporation. This ruling marks the resolution of a case initiated by the CFTC on September 2, 2020, against the defendants.
Defendants Ordered to Pay $204.6 Million in Penalties by Court
According to the CFTC's press release, the court's order imposes severe penalties on the defendants for their illegal activities. The defendants are found liable for offering illegal, off-exchange binary options and engaging in fraudulent practices related to these offerings. They have been ordered to pay a total of $204.6 million in disgorgement and civil monetary penalties. This includes $51,155,645 in disgorgement, to be paid jointly and severally, and a civil monetary penalty of $153,466,935.
Additionally, the court has issued a permanent injunction prohibiting the defendants from engaging in any conduct that violates the Commodity Exchange Act. Additionally, they are banned from registering with the CFTC and trading on any registered entity in the future.
Regulatory Bodies Unite to Prosecute Elaborate Binary Options Fraud
The case, which dated back to September 26, 2015, alleged that the defendants operated an internet platform to offer illegal binary options trading. The court's order outlines that the defendants not only misrepresented the risks associated with binary options to customers but also manipulated trade outcomes to ensure customer losses and generate profits for themselves. Through this fraudulent scheme, the defendants fraudulently obtained over $51 million from customers in the United States.
The success of this case highlights the collaborative efforts of various regulatory bodies worldwide in combating financial fraud. The CFTC has acknowledged the assistance provided by organizations, such as the US Securities and Exchange Commission, Ontario Securities Commission, Australian Securities and Investments Commission, and others in uncovering and prosecuting this elaborate scheme.
