US Court of Florida Orders Man to Pay $2.5M on a Binary Options Fraud Case

The US Commodity Futures Trading Commission (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) announced on Wednesday that a judge from the Middle District of Florida ordered a local man to pay $2.5 million for his role in a binary options fraud. According to the press release, Judge Gregory A. Presnell of the US District Court for the Middle District of Florida issued an order granting a permanent injunction against Ronald Montano and Montano Enterprise LLC.

The order noted that Montano established a fraudulent scheme asking people via email, websites, and video sales letters to acquire an alleged successful automated trading system that could trade customers’ funds in binary options. The individual relied on fake trading results, fabricated testimonials and the background of nonexistent creators to make the bogus investment opportunity look legitimate.

“The order specifically requires Montano and MEL to pay restitution in the amount of $825,000 and a civil monetary penalty of $1.675 million. Montano and MEL are also ordered to cease and desist from further 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 (CEA) and CFTC regulations, from trading on or subject to the rules of any CFTC-registered entity, and from engaging in any activities requiring registration with the CFTC,” the financial watchdog commented.

Costa Rican Firms Involved in Commodities Trading Fraud

Additionally, the CFTC clarified that the court’s order came in the wake of a complaint filed by them on September 27, 2018, charging Montano with solicitation fraud related to binary options trading.

“The CFTC cautions victims that restitution orders may not result in the recovery of money lost because wrongdoers may not have sufficient funds or assets,” the CFTC added.

Yesterday, the US CFTC filed an enforcement action to charge Rudy Avila. Furthermore, six firms were allegedly involved in fraudulent solicitation to trade in commodity futures, options on commodities futures, retail off-exchange, misappropriation of funds and issuing false statements.