An Ohio federal court has ordered Jared Davis, the mastermind of a $10 million binary options scam, to pay $561,971 in restitution to the defrauded victims. Davis ran the fraudulent binary options brands, Option Mint, Option King and Option Queen, between 2012 and 2016 under Erie Marketing, LLC.
Commodity Futures Trading Commission (CFTC) announce
The court order issued on Friday, noting that the former Ohio resident was also subject to a permanent registration and trading ban. The ruling follows a September 2019 action against Davis brought by the US Derivatives Markets Watch.
Separately, Davis also pleaded guilty to three counts of personal tax evasion and 11 counts of wire fraud on behalf of his company, Erie Marketing, both following charges initiated by US prosecutors in the Northern District of Ohio.
In a statement from the CFTC, the regulator noted that Davis was sentenced earlier in January to 30 months in prison and a subsequent three years of supervised release. Besides his company, the binary options operator has also been hit with multiple financial penalties, with the expected total payments now being around $7 million.
“He was also ordered to pay a $300,000 fine, $1,039,208 in restitution to the Internal Revenue Service (IRS), and to be jointly and severally liable for the debts of Erie Marketing, LLC, including $656,493.20 in restitution to victims and a fine of $4.4 million,” the commission explained. Commodity futures trading, giving a breakdown of other penalties.
On the other hand, the SEC said the SEC v. Davis case is still pending. The securities regulator in February 2019 entered into a partial settlement with Davis based on the terms that the court would “determine the removal and civil penalties at a later date.”
How Davis Ran a $10 Million Scam: CFTC
According to the CFTC, Davis committed the fraud by disseminating online and website marketing campaigns as well as call center operators. His activities have targeted investors in the United States and other countries, by promoting trading opportunities in OTC binary options on commodities, foreign currencies, stocks and indices.
However, the binary options executive had other plans as he made “misrepresentations” and hid “material facts” about the trading business from investors. For example, he failed to disclose that he “actively took the opposing positions on each trade,” the CFTC said, adding that Davis often manipulated the settings of his options trading software in order to “increase the odds of clients’ losses.”
Meanwhile, David Butler, operator of binary options companies SpotFN and Binary FN, recently pleaded guilty to defrauding investors out of $2.9 million through binary options schemes. Moreover, California-based John Black and its affiliates were recently hit with more than $29 million in damages and penalties.
An Ohio federal court has ordered Jared Davis, the mastermind of a $10 million binary options scam, to pay $561,971 in restitution to the defrauded victims. Davis ran the fraudulent binary options brands, Option Mint, Option King and Option Queen, between 2012 and 2016 under Erie Marketing, LLC.
Commodity Futures Trading Commission (CFTC) announce
The court order issued on Friday, noting that the former Ohio resident was also subject to a permanent registration and trading ban. The ruling follows a September 2019 action against Davis brought by the US Derivatives Markets Watch.
Separately, Davis also pleaded guilty to three counts of personal tax evasion and 11 counts of wire fraud on behalf of his company, Erie Marketing, both following charges initiated by US prosecutors in the Northern District of Ohio.
In a statement from the CFTC, the regulator noted that Davis was sentenced earlier in January to 30 months in prison and a subsequent three years of supervised release. Besides his company, the binary options operator has also been hit with multiple financial penalties, with the expected total payments now being around $7 million.
“He was also ordered to pay a $300,000 fine, $1,039,208 in restitution to the Internal Revenue Service (IRS), and to be jointly and severally liable for the debts of Erie Marketing, LLC, including $656,493.20 in restitution to victims and a fine of $4.4 million,” the commission explained. Commodity futures trading, giving a breakdown of other penalties.
On the other hand, the SEC said the SEC v. Davis case is still pending. The securities regulator in February 2019 entered into a partial settlement with Davis based on the terms that the court would “determine the removal and civil penalties at a later date.”
How Davis Ran a $10 Million Scam: CFTC
According to the CFTC, Davis committed the fraud by disseminating online and website marketing campaigns as well as call center operators. His activities have targeted investors in the United States and other countries, by promoting trading opportunities in OTC binary options on commodities, foreign currencies, stocks and indices.
However, the binary options executive had other plans as he made “misrepresentations” and hid “material facts” about the trading business from investors. For example, he failed to disclose that he “actively took the opposing positions on each trade,” the CFTC said, adding that Davis often manipulated the settings of his options trading software in order to “increase the odds of clients’ losses.”
Meanwhile, David Butler, operator of binary options companies SpotFN and Binary FN, recently pleaded guilty to defrauding investors out of $2.9 million through binary options schemes. Moreover, California-based John Black and its affiliates were recently hit with more than $29 million in damages and penalties.