CFTC pushes for fines in action against binary options fraudsters

Maria Nikolova

The regulator asks the Court to impose fines of $1,000 per day on David Gilbert Saffron and Circle Society over their failure to comply with a civil contempt order.

Shortly after the Nevada District Court issued an order threatening to fine binary options scammers David Gilbert Saffron and Circle Society, the Commodity Futures Trading Commission (CFTC) has asked the Court to impose the penalties due to the defendants’ non-compliance with the Court’s orders.

Finding the defendants in civil contempt, the Court has ordered them to, no later than February 7, 2020, make available to the CFTC, for inspection and reproduction, all of their books, records and other documents outlining in detail all efforts by defendants and their agents to locate the defendants’ books, records and other documents.

No later than February 7, 2020, the defendants had to provide the CFTC with a full accounting of each defendant’s assets, held jointly or separately, within or outside the United States, beginning from December 2017 for Saffron and from September 2018 for Circle Society.

Also, no later than February 7, 2020, the defendants had to provide written responses to the CFTC, under oath, to several questions – for instance, one question concerns any virtual currency addresses the defendants have.

In a notice filed with the Court on February 8, 2020, and seen by FinanceFeeds, the CFTC explains that, on February 6, 2020, Saffron produced three files to the CFTC via the CFTC’s FTP site, which included: (1) a letter to the CFTC; (2) an Excel spreadsheet described by Saffron as a “partially restored client list”; and (3) a blank Protective Order template. The CFTC views these documents as non-compliant with the Court’s order.

Further, to date, the defendants have not provided any type of accounting to the CFTC. The regulator says that the defendants have not identified a single asset, a single bank account, a single virtual currency account, or any personal property.

Finally, the defendants have not provided any written responses to the questions in the Order.

The CFTC requests that the Court impose without delay the daily compliance fines of $1,000 against Saffron and $1,000 against Circle Society for each day they are in non-compliance with the Civil Contempt Order. In addition, the regulator intends to submit a motion for additional coercive sanctions if the defendants continue their contemptuous conduct and non-compliance with the Court’s orders.

The regulator accuses the defendants of fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme. The CFTC complaint alleges that the defendants fraudulently solicited funds from at least fourteen members of the public to participate in a pool operated by Circle Society, an entity Saffron created and used to perpetrate his fraud, by making false claims of Saffron’s trading expertise and guaranteeing rates of return up to 300%.

The defendants misappropriated funds, including by retaining participants’ funds in Saffron’s personal electronic cryptocurrency wallet and by using funds to pay other participants, in the manner of a Ponzi scheme. The defendants then lied to participants in order to conceal their misappropriation.

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

Metaverse Gaming NFT

Mon Protocol and Pixelverse Forge a Groundbreaking Partnership to Revolutionize Blockchain Gaming

Mon Protocol and Pixelverse make history in the annals of Blockchain gaming as they set up the architecture for the melding of their technologies.

Chainwire

Nimiq Pay Launch: A New Standard For Self-Custodial Crypto Payments

Nimiq, the blockchain ecosystem for payments that is designed to make cryptocurrency easy for everyone to use, has taken the first concrete steps towards its goal of becoming the world’s most widely-accepted digital asset for payments with the launch of Nimiq Pay.

Inside View, Interviews

Exclusive: GoMining’s Mark Zalan wants to democratize opportunities of Bitcoin halving

As the Bitcoin community counts down to the upcoming Bitcoin halving, Mark Zalan, CEO of GoMining, shared exclusive insights into how the company is gearing up for this pivotal event in the cryptocurrency world.

Digital Assets

Umoja Partners with Merlin Chain to Launch Revolutionary Bitcoin-Based Synthetic Dollar – USDb

Umoja, an innovative smart money protocol, has embarked on a strategic partnership with Merlin Chain, a leading Bitcoin Layer-2 network, to introduce USDb, the first Bitcoin-based, high-yield synthetic dollar.

Crypto Insider

Bybit Report Highlights Imminent Bitcoin Supply Shortage and Rising Scarcity Post-Halving

Bybit, recognized as one of the top three cryptocurrency exchanges globally in terms of trading volume, has recently published a comprehensive report highlighting the future supply constraints of Bitcoin.

blockdag

BlockDAG Outshines XRP Price Breakout and Uniswap Crypto Forecast with 20,000x ROI Potential and Teaser for Keynote on Moon

BlockDAG has become the latest sensation in the crypto world, which has taken the spotlight by storm, overshadowing even the most optimistic projections for XRP’s price breakout and Uniswap’s crypto forecast.

Digital Assets

Binance announces blockchain courses at European universities

“Education plays a pivotal role in advancing adoption and fostering opportunities as these technologies redefine our future and global economic landscape.”

Fintech, Uncategorized

Kepler Cheuvreux taps Adaptive for new execution equities platform

KCx, Kepler Cheuvreux’s execution division, has partnered with trading technology firm Adaptive Financial Consulting to create a new event-driven trading system based on Aeron and its own Hydra technology.

Chainwire

Bybit Livestream: Thought Leaders from Bybit, OKX and Wintermute on the 2024 Crypto Market Bull Run, April 19. Register and Secure Your Spot Now.

In a post-ETF and BTC halving world, a new era has opened as the infrastructure in the crypto industry has changed tremendously from the last bull run and halving cycle.

<