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