CFTC, head of $10M binary options scam continue settlement talks
The Commodity Futures Trading Commission (CFTC) and Jared Davis, the head of a $10 million binary options scheme, continue their settlement talks. This becomes clear from a status report filed in the Ohio Northern District Court on April 28, 2022.
The document, seen by FX News Group, states that the CFTC and Davis are continuing to work in good faith to reach a potential resolution of this case by means of a negotiated consent order. The parties anticipate that a resolution of this civil case will be dependent upon resolution of the related criminal case.
Let’s recall that the CFTC filed its civil enforcement action against Jared J. Davis back in September 2019.
The CFTC complaint charges that from at least July 2012 through at least June 2016, Davis fraudulently solicited and accepted at least $10 million from customers in the United States and elsewhere to trade off-exchange binary options on commodities and Forex, among other things. As alleged in the complaint, Davis executed his unlawful scheme through internet marketing campaigns, various websites, and call centers using trade names such as Option Mint, Option King, and Option Queen.
The complaint further charges that Davis defrauded customers by making misrepresentations and omissions of material facts, including misrepresenting and failing to disclose that he effectively took the opposing position on each trade and therefore made money when customers lost money on trades. The complaint also alleges that Davis failed to inform customers that he frequently had the trading platforms manipulate the options trading software settings to increase the odds of customer losses.
In its continuing litigation, the CFTC seeks full restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act and Commission Regulations.
The next Joint Status Report in this lawsuit is due by November 7, 2022.