Binary options fraudster Jared Davis refers to fifth amendment privileges in reply to CFTC complaint

Maria Nikolova

Davis, who operated an unlawful scheme through Option Mint, Option King, and Option Queen, files a rather blunt reply to the CFTC’s complaint.

Jared J. Davis, who is accused by the Commodity Futures Trading Commission (CFTC) of running a large-scale binary options scam, has filed a rather straightforward reply to the regulatory complaint.

Davis’s answer to the CFTC’s complaint is five-pages long and contains the following statement which is repeated over and over again:

“Pursuant to his Fifth Amendment Privileges, Mr. Davis makes no answer to the allegations contained in paragraph x the Complaint”.

Typically, the answers to complaints include affirmative defenses. Davis’s filing with the Ohio Northern District Court contains no such statements. However, the defendant does not hesitate request that the CFTC’s complaint be dismissed at the CFTC’s costs.

The 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. 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.

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.

Read this next

Institutional FX

Eurex reports mixed volumes for November 2022

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

Digital Assets

AAX’s Nigerian customers storm local office amid withdrawal halt

According to the Nigerian media, angry consumers of the troubled crypto exchange AAX had stormed its local office hoping they can get their money back after the firm halted operations earlier in November.

Digital Assets

As SPAC bubble bursts, Circle terminates its $9 billion merger with Concord

USDC stablecoin issuer, Circle has terminated its planned $9 billion SPAC merger with publicly traded blank-check company Concord Acquisition Corp.

Institutional FX

Integral reports lowest FX volume in two years

Foreign exchange trading volumes dropped in November across Integral’s trading platforms as currency markets saw a relatively quiet period after consecutive months of strong trading activity.

Technology

CDEX: Avelacom announces connectivity to Cboe Europe Derivatives

“We anticipate that many of our customers from Asia will be particularly interested in getting exposure to pan-European products via just one venue, which CEDX offers.”

Retail FX

BUX acquires Spanish Ninety Nine’s retail brokerage unit

“Thanks to this acquisition, Ninety Nine users will have access to a wide range of services provided by BUX, such as investing in Spanish, European and US stocks, ETFs, cryptocurrencies, fractional investing and the BUX Savings Plan.”

Digital Assets

SEBA and HashKey partner to expand crypto in Hong Kong and Switzerland

SEBA Bank AG has announced a new strategic partnership with HashKey Digital Asset Group as part of both firm’s expansion efforts in Hong Kong SAR. 

Executive Moves

Broadridge appoints Martin Koopman as Chief Product Officer

“Martin has a proven record of driving product innovation both at Broadridge and at previous companies. His vision and proven ability to execute will be invaluable as we become the foremost SaaS provider to the financial services industry.”

Digital Assets

DAM rolls out Moonwalkers v1 testnet ahead of support for yield-generating collateral

“We want to champion innovation by making it easier to securely direct stablecoin liquidity away from Ethereum towards newer networks without the constant vulnerabilities posed by bridges. d20 will help accelerate the adoption flywheel of emerging networks, and this is our first step towards making our omnichain promise a reality.”

<