The New Jersey Bureau of Securities on Friday entered Cease and Desist Order against Vertex Trade Options, Zolarex Ltd and IBPC Corp a/k/a IBPC Ltd. The firms are engaged in the fraudulent offering of investments in binary options and cryptocurrencies.

Let’s note the CFTC is targeting Vertex in a separate action launched in September this year, whereas “Zolarex” is a name that should be familiar to those following the proceedings against Israel-based Yukom Communications, Lee Elbaz and Yossi Herzog.

The New Jersey authorities state that Vertex and Zolarex are fraudulent entities that employ unregistered agents using fake social media profiles to contact and solicit unsuspecting individuals to invest in fraudulent investments and securities. Vertex and Zolarex’s unregistered agents contact unsuspecting investors via social media and other websites and promise them extraordinary investment returns.

Once the investor sends their funds to Vertex and Zolarex, the entities issue fraudulent online statements that report significant gains to investors. The unsuspecting investors either send more money to the fraudulent entities based on the purported success of their initial investment or request that their funds and profits be returned to them – either way investors will never have their money returned to them.

If the investor does request their funds and profits be returned, Vertex and Zolarex further scam investors by requiring additional money to be paid for purported taxes and other fees, including an International Business Permit Certificate, which is an official-sounding certification issued by an unknown entity called the IBPC. IBPC falsely claims to be a partnership with international regulators, including the U.S. Securities and Exchange Commission (SEC).

Vertex and Zolarex are offering securities that are neither registered with the Bureau, nor “federally covered,” nor exempt from registration. The entities are engaging in fraud in connection with the offer and sale of securities. In connection with the offer of the Vertex Investments, Vertex and Zolarex are omitting material facts necessary in order to make the statements made in light of the circumstances under which they were made, not misleading to investors.

The regulator notes that Vertex, Zolarex and IBPC’s violations are continuous and ongoing.

As per the order issued on December 4, 2020, Vertex, Zolarex and IBPC and any person and entity under their direction has to immediately cease and desist from:

• offering for sale any security in New Jersey until the security is registered with the Bureau or is offered for sale pursuant to an exemption from registration under the Securities Law;
• acting as broker-dealers or agents in New Jersey until each is registered with the Bureau or are acting pursuant to an exemption from registration under the Securities Law;
• making material misstatements of fact, or omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in connection with its offer and/or sale of securities in New Jersey; and
• violating any other provisions of the Securities Law and any rules promulgated thereunder for the sale of any security in New Jersey.