CFTC renews motion for entry of default against uncontactable binary options fraudster
The US regulator is trying to secure entry of default against Peter Szatmari, a binary options marketer accused of having defrauded victims of $3.8 million.
The United States Commodity Futures Trading Commission (CFTC) has renewed its push to secure an entry of default against binary options marketer Peter Szatmari, accused of having defrauded victims of $3.8 million.
As FinanceFeeds has reported, the CFTC had earlier sought an entry of default against Szatmari. However, the Hawaii District Court nixed the motion in January telling the regulator to republish the summons thus giving the defendant more time to respond.
The latest Court filings indicate that Szatmari was due to reply not later than March 9, 2020. He, however, has failed to appear, plead or otherwise defend within the time allowed, and, therefore, is now in default, the Commission says. That is why, the CFTC insists he should be declared in default.
According to the CFTC complaint, Szatmari lured prospective customers by disseminating fraudulent marketing materials in six marketing “campaigns.” These solicitations instructed unsuspecting investors to open and fund binary options accounts with “recommended” brokers to get free access to automated trading software that purported to generate astronomical profits with no risk of loss. According to the filings, these marketing materials included numerous false or misleading statements.
Szatmari also failed to disclose that he received a fee from the binary options brokers he recommended every time a new account was opened and funded as a result of his solicitations. Further, he failed to disclose that this fee arrangement was the sole basis for recommending brokers. Szatmari’s fraudulent solicitations were disseminated to and/or viewed by millions of prospective customers, with approximately 25,000 customers opening binary options trading accounts and funding those accounts, usually with an initial deposit of $250 or more.
The CFTC seeks full restitution to defrauded individuals, disgorgement of ill-gotten gains, a civil monetary penalty, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.