Binary options broker pushes its client to the limit

Maria Nikolova

Aggressive persuasion methods used by a binary options broker have led to heavy financial losses and have pushed Fred Turbide of Edmonton, Alberta, to commit a suicide, The Times of Israel reports.

As regulators across the globe are stepping up their efforts to tackle illicit online trading and binary options fraud, the extent of damage caused by such scams is becoming more apparent.

A truly sad story on the topic appeared today in The Times of Israel, with the newspaper reporting of a 61-year old Fred Turbide of Edmonton, Alberta, having committed suicide after he lost a heavy sum of money due to using the services of binary options brokers.

The newspaper, quoting a Canadian law-enforcement official as a source, reports that Mr Turbide committed a suicide on December 21, 2016, following the loss of all of his savings and a substantial amount of borrowed money, totalling more than CAD300,000 (USD 226,120). He lost about two-thirds of this sum on the 23Traders.com platform, which operates from Israel.

Mr Turbide had been pushed by his broker at 23Traders, who presented himself as “Julian Wellington,” to invest his life savings, along with the credit for his home and business into binary options. The aggressive marketing approach included reassurances that he would generate substantial revenue. Wellington told Mr Turbide he was making money, urging him to invest more, until one day he admitted that all the money is gone.

Before committing the suicide, Mr Turbide left a note to his wife: “I am so, so sorry. I am in the garage dead. Do not go there just call the police… Julian, Thomas and David at 23Traders have pushed me to my death.”

Fred Turbide was an experienced entrepreneur and, as his wife says, a good family man. Turbide’s widow, Maria Chaves-Turbide said “I want to see these people shut down. I want this scam closed and I want the world to know that they were responsible for taking the love of my life away from me.”

The Times of Israel elaborates that 23Traders.com operates from a call center in Israel that goes by the name of “Market Giants Ltd”.

Asked for response, a customer service representative of 23traders.com said the claims made in the article were “absolutely false”.

At present, Israel is taking a very decisive approach against the binary options industry, resulting in binary options companies cutting and running. The role of Israel’s national regulatory chief Professor Shmuel Hauser has been vital with respect to stopping the activities of such entities. Professor Hauser has labelled the binary options business as “filth” and has noted the tremendous damage it is doing to Israel’s reputation.

These efforts are echoed across the globe, with the most recent example being from France where a ban on the advertising of risky financial products, like binary options, has been introduced.

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