ASIC secures win in binary options case targeting One Tech Media and Allianz Metro Pty Ltd

Maria Nikolova

The Federal Court has ruled that One Tech Media Limited, Allianz Metro Pty Ltd, Eustace Senese and Yoav Ida breached the Corporations Act in relation to the pressure sale of binary options to Australian consumers.

The Australian Securities & Investments Commission (ASIC) today announced that it secured an important win in proceedings targeting a raft of binary options entities. The Federal Court has determined that One Tech Media Limited (OTML), Allianz Metro Pty Ltd, Eustace Senese and Yoav Ida breached the Corporations Act in relation to the pressure sale of binary options to Australian consumers.

OTML, based in the Seychelles and later in the Marshall Islands, offered binary options trading to customers in Australia through and but did not hold an Australian Financial Services Licence (AFSL). OTML also issued binary options without providing the necessary product disclosure statements.

Justice Davies found that OTML engaged in unconscionable conduct in relation to a financial product. Her Honour also determined that OTML misled and deceived Australian customers by making several false or misleading statements and representations, and conducted itself dishonestly.

Justice Davies noted that, ‘the evidence revealed a deliberate deception of vulnerable people to trap them into parting with their money in a way that deprived them of any opportunity to recover it’.

Australian company Allianz Metro Pty Ltd along with Eustace Senese and Yoav Ida were also found to have breached the Corporations Act by providing paying agency services to the financial services business conducted by OTML, thereby enabling OTML to collect funds from Australian customers of the websites.

Due to their individual contributions, Allianz Metro Pty Ltd along, Eustace Senese and Yoav Ida were found to have arranged for OTML to issue binary options and thereby themselves conducted a financial services business without holding the requisite licenses.

Justice Davies also determined that Mr Senese and Mr Ida had not issued the requisite product disclosure statement each time a binary option was issued by OTML.

Five other Australian defendants – Bianco Pty Ltd, IMC Holdings Pty Ltd, Sansen Pty Ltd, Transcomm Global Pty Ltd and Cameron Senese – were found to have not contravened the Corporations Act. Allianz Metro Pty Ltd was found not to have provided a custodial or depository service.

The Australian regulator will now seek orders that OTML pay civil penalties in relation to the Court’s declaration made; and disqualification orders against the Eustace Senese and Yoav Ida.

A date for the hearing on penalty will be fixed by the Court.

Read this next

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets enables Shopify merchants to accept crypto payments has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.