Ohio Court approves final judgment against binary options scammer Jared Jeffrey Davis
Davis, who engaged in the fraudulent offer of binary options under the brand names OptionMint, OptionKing, Option Queen, and OptionPrince, neither admitted nor denied the SEC’s allegations.
There has been some development in the proceedings launched by the United States Securities and Exchange Commission (SEC) against Jared Jeffrey Davis, known for the offer and sale of unregistered binary options via entities like OptionMint, OptionKing, Option Queen, and OptionPrince.
FinanceFeeds’ research shows that Judge Jack Zouhary of the Ohio Northern District Court has signed a judgment as to Jared Davis, approving the proposed settlement between the defendant and the SEC.
Let’s recall that, in December 2018, the SEC charged Jared Jeffrey Davis and his business partner Dale Burke Pinchot with defrauding investors in connection with an unregistered binary options business.
The complaint alleges that Davis misrepresented the number of investors who successfully traded binary options and failed to disclose that, to be successful, an investor would need to win an unlikely high percentage of trades. Davis, Pinchot, and their companies are said to have effectively took the opposing position on each trade and therefore made money when customers entered into losing binary options trades. The complaint also alleges that Davis failed to inform investors that he frequently manipulated the options trading software to increase the odds of investor losses.
The SEC’s complaint charges Davis with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, the registration provisions of Sections 5(a) and 5(c) of the Securities Act, and the broker-dealer registration provisions of Section 15(a)(1) of the Exchange Act and charges Pinchot with violating antifraud provision Section 17(a)(2) of the Securities Act.
Back then, the defendants consented to the entry of judgments without admitting or denying the SEC’s allegations. These judgments got the approval of the Court late last week.
Under the judgments, the defendants are permanently enjoined from violating the above-mentioned provisions of the federal securities laws, and from participating in the issuance, purchase, offer, sale, or promotion of any binary option security. The final judgments provide that the court will determine disgorgement and civil penalties at a later date.