In a landmark ruling, the Commodity Futures Trading Commission (CFTC) achieved a significant victory in its crackdown on fraudulent binary options operations.
The US District Court for the Western District of Texas has delivered a final judgment against individuals Jonathan Cartu, Leeav Peretz, Nati Peretz, purportedly from Israel, and the Seychelles-based corporation, Blue Moon Investments Inc. This judgment concludes a legal battle initiated by the CFTC on September 2, 2020.
The court has handed down stiff penalties to the defendants for their unlawful actions, holding them accountable for operating illegal, off-exchange binary options and engaging in deceptive practices.
They are collectively ordered to disgorge $51,155,645 and pay a civil monetary penalty totaling $153,466,935, summing up to a staggering $204.6 million.
Moreover, the court has issued a permanent injunction against the defendants, barring them from violating the Commodity Exchange Act, registering with the CFTC, or trading on any registered entities henceforth.
Originating from allegations dating September 26, 2015, the case detailed how the defendants ran an online platform offering unauthorized binary options trading.
The court highlighted their deceptive conduct in misrepresenting binary options’ risks to customers and rigging trade outcomes to favor their profits, leading to over $51 million fraudulently extracted from US customers.
This successful prosecution underscores the concerted effort of global regulatory bodies in tackling financial fraud.
The CFTC particularly recognized the support from the US Securities and Exchange Commission, Ontario Securities Commission, Australian Securities and Investments Commission, among others, for their role in dismantling this complex fraudulent operation.
This collaborative endeavor demonstrates a robust stance against financial crimes, ensuring the integrity of the markets and safeguarding investors’ interests.