City Police follow US – actually send the squad against binary options fraudsters

Maria Nikolova

Police and Trading Standards visited offices in the City in an effort to clamp down on binary options fraud which has cost more than £59 million to victims.

In a largely expected move, given the worldwide crackdown on binary options, the City of London Police today reported that it had conducted a day of action on October 17, 2017. The action consisted of visiting 20 offices with the City of London Corporation’s Trading Standards.

In co-operation with the Financial Conduct Authority (FCA) and the HM Revenue & Customs (HMRC), the Police were able to gather intelligence on different types of investment fraud and, in particular, binary options fraud.

There are not many details about the results of the action day. For instance, one team discovered a business that had paid over three month’s rent upfront to the serviced office provider and then had disappeared. The authorities and the police will now seek to establish information about the company in question and to investigate whether it was possibly a boiler room.

The day of action used Operation Broadway tactics. This means that the police officers visited businesses occupying serviced offices and reviewed their compliance documents.

The City of London Police, City of London Corporation Trading Standards, Metropolitan Police, National Trading Standards ‘Scambusters’ Team, HMRC and the FCA, launched Operation Broadway in 2014. This was a London-wide intelligence-led drive to uncover and disrupt suspected ‘boiler room’ investment frauds operating out of some of the capital’s most iconic buildings in the heart of the UK’s main financial districts.

The action is barely surprising given the latest actions against binary options firms in the United States and Israel. As FinanceFeeds has reported, Lee Elbaz, a/k/a Lena Green, CEO of Yukom, the operator of BinaryBook in Israel, was arrested by the Federal Bureau of Investigations (FBI) at John F Kennedy airport in New York on September 14 upon arrival from Israel. The FBI alleged violations of 18 USC 1343 (Wire Fraud) and 18 USC 1349 (Conspiracy to Commit Wire Fraud.) Each count carries a potential maximum 20 years in prison.

Earlier FinanceFeeds’ research has exposed how binary options firms like SpotOption manage to establish their offices in London.

Meanwhile, the number of people falling victim to binary options fraud is rising. A total of 2,065 people have reported being a victim of binary options fraud to Action Fraud since 2012, with the amount lost exceeding £59 million.

The UK government has sought to impose new rules set to boost transparency of Scottish Limited Partnerships, which are often fronting for binary options firms. And yet, most such companies have failed to comply with the new regulations.

Read this next

Uncategorized

Moscow Exchange reports $350 billion in November FX volumes

FX trading volumes continued its upward momentum at Moscow Exchange (MOEX) during November, buoyed by a steady rise in volatility coupled with a multi-year effort to bring new business to the platform.

Retail FX

Interactive Brokers’ volumes continue growth trajectory in November

Interactive Brokers LLC (NASDAQ:IBKR) has announced higher trading volumes in November, dwarfing the metrics for October and the same period last year by 20 percent.

Retail FX

Exness trading volume hits record highs for second consecutive ‎month

FX broker Exness’ trading volumes have breached new highs in November, building on the record-breaking turnover streak from the beginning of the fourth quarter. That has been aided by the economic impact from the Covid-19 developments and inflation concerns that apparently sent investors hunting for FX instruments to limit their risk exposure.

Institutional FX

Hedge-fund legend Steven Cohen invests in Dmitri Galinov’s 24 Exchange

24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, has completed a fresh fundraising round of $14.25 million at an undisclosed valuation. The recent capital injection was led by Point72 Ventures, the venture capital firm of the hedge fund titan Steven Cohen.

Digital Assets

Can Coinbase make or break XRP? – (Congress, XRP rating, JP Morgan)

According to Coinbase’s Council, XRP has the highest rating among 28 cryptos – meaning it is the closest you can get to a security: 4 out of 5.

Digital Assets

Polygon (MATIC) delves deeper into blockchain gaming by partnering with GameOn

Polygon, the Layer 2 scaling solution for Ethereum, has announced a partnership with GameOn Entertainment to build new and different types of NFT games on the network as it seeks to expand into the blockchain gaming and NFT space in a major way.

Retail FX

David Beckham to promote GemForex across Asia

GemForex makes efforts to lead in trading conditions, execution times, safety of client funds and data security, according to the FX and CFD broker holding a Mauritius Financial License.

Retail FX

InstaForex extends sponsorship deal with Borussia Dortmund after German Cup win

InstaForex provides access to trading of forex, CFDs, stocks, futures, options, and cryptocurrencies as the FX industry goes multi asset to address the needs of an increasingly demanding client base. 

Digital Assets

Treasury Secretary Yellen still cant decide on digital dollar

Treasury Secretary of the US, Janet Yellen, has said that she still is not sure whether the US should go ahead and have the digital dollar and follow the example of other major countries including China and India in introducing the same.

<