CFTC seeks to impose $1.5m penalty on binary options, Bitcoin fraudsters

Maria Nikolova

Dillon Michael Dean and The Entrepreneurs Headquarters Limited have failed to respond in any way to the CFTC’s complaint against them.

The United States Commodity Futures Trading Commission (CFTC) has taken another step in its action against Dillon Michael Dean and The Entrepreneurs Headquarters Limited (TEH), charged with commodity pool operator fraud, options fraud, and failure to register with the Commission, in violation of the Commodity Exchange Act and Commission Regulations.

The CFTC alleges that from around April 2017 through the present the defendants engaged in a fraudulent scheme to solicit funds (mainly in Bitcoin) for participation in a pooled investment vehicle for trading commodity interests. TEH has also failed to register with the Commission as a commodity pool operator, and Dean has failed to register with the Commission as an associated person of a CPO.

Late last week, the CFTC requested that the New York Eastern District Court enters a default judgement in favor of the Commission and against the defendants. The regulator requests that the Court orders Defendants to be held jointly and severally liable and to make restitution in the amount of $432,184.79 plus post-judgment interest.

In light of the unjust gains to defendants, the egregiousness of defendants’ intentional conduct, and their failure to accept any responsibility, the CFTC also seeks, as a deterrent, to impose a civil monetary penalty of triple the monetary gain to the defendants, that is, $1,497,792.12.

To date, neither defendant has appeared in the case personally or through a representative, and despite service on defendants of numerous court papers, and multiple other attempts by the Commission to contact the defendants, the regulator has not received any response to this lawsuit or communication of any kind from Dean and his company.

As FinanceFeeds has reported, Dillon Michael Dean and TEH have been out of reach. There had been visits to Dean’s addresses in Colorado, emails and phone messages, as well as calls. The regulator even resorted to a skip trace performed on March 15, 2018, using CLEAR, an online investigative platform commonly utilized by law enforcement agencies and operated by Thomson Reuters. But it revealed no further address, email, or telephone information for Dean.

A Deputy with the Boulder County Sheriff’s Office has spoken with a woman who identified herself as Christina Kielnecker who stated that Dean no longer lived at the residence. She stated that “he packed up and moved his belongings out of the residence, after all the stuff started coming down.”

The case is captioned Commodity Futures Trading Commission v. Dean et al (2:18-cv-00345).

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.