USA – SEC Charges 3 with Binary Options Scam

The 3 foreign nationals are accused of scamming main street investors, including vulnerable individuals, through a

The Securities and Exchange Commission (SEC) charged 3 foreign individuals – Gil Beserglik, and Petersen, with the deception of American investors, including retirees, causing them to lose tens of millions of dollars, through fraudulent online sale of .

Securities and Exchange Commission – Finleaks

According to the lawsuit the men charged operated 3 online binary option brokerage sites: Bloombex Options, Morton Finance and Starling Capital. The sites manipulated the by making false promises of very high profits in a short period of time. The sites ran call centers in and , where the salespeople were instructed to identify vulnerable and apply high pressure sales tactics in order to lure them into investing vast amounts of money. employees lied to the , telling them that they only if the investors’ and therefore would have no incentive to give the investors poor advice, while in fact the only way the brokers stood to earn money was if the investors lost their money and were incentivized to give investors poor investment advice.

The of the were spotted for being particularly vulnerable, with no background in the industry no real understanding of trading. Many of the lost hundreds of thousands of dollars each – some losing their entire life savings – and the brokers ignored repeated and explicit requests to withdraw the funds from the accounts and instead pressured the into invest even more.

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