A court sitting in Florida has chosen Melanin Damian as the temporary receiver in the Binary Option’s suite of three individuals. The three individuals and their associates were involved in a scheme that fraudulently solicited retail investors for trading cryptocurrency, forex, and binary options.
The appointment of Melanie is coming right after the filling of the CFTC complaint, accusing the defenders of defrauding unsuspecting customers for about $20 million in the U.S. and other regions.
Defendants were involved in a fraudulent marketing scheme
Florida resident Daniel Fingerhut, as well as his co-accomplice Itay Barak and Tal Valariola, both from Tel Aviv, were accused and charged to court by the US derivatives regulator.
Three of them were accused of illegally operating Digital Platinum Limited (DPL), an Israel-based marketing firm, as well as other subsidiaries under the same Digital Platinum brand in the US and Bulgaria.
The CRFC also charged Aicel Carbonero for receiving funds from Fingerhut’s fraudulent activities. However, she claimed the said amount was part of a real-estate deal. However, the CFTC reiterated that she did not provide any substantial evidence to support her claims.
“Carbonero did not provide any legitimate services to AIP or Digital Platinum Defendants and does not have any interest in or entitlement to Fingerhut’s home,” CFTC noted in a note addressed to the Florida court.
Based on the story, it appears Fingerhut had “quit-claimed” the deed to his house for $10 to carbonero, after discovering that the scheme was about to end.
A different kind of scam
Based on the report by CFTC, the scheme was carried out as a promotional content to mislead unsuspecting victims into investing in the bogus financial scheme that is non-existent. The misleading promotional content was viewed millions of times, as the content caused over 60,000 people to open accounts to trade in different types of assets with the defendant’s unregulated brokers. The victims of the fraudulent activity were asked to make minimum deposits of about $250.
CFTC further stated that Daniel Fingerhut has agreed to offer his assistance and cooperate with CFTC during its investigation into the fraudulent scheme. He also said he will stand as a witness against his former collaborators.
However, rather than cooperate truthfully, he made misleading and false statements to the CFTC to cover his tracks and prevent the court from knowing the extent of his involvement in the fraud.
Presently, CFTC is tracing and recovering the funds while imposing penalties on the three suspects involved in the fraud.