Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

abdelaziz Fathi

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Further, Judge Zouhary sentenced Davis to 30 months in prison, a fine of $300,000, restitution to the IRS, three years of supervised release, and to be jointly liable for the debts of Erie Marketing, LLC.

Back in 2019, the Commodity Futures Trading Commission (CFTC) charged the operator of Option Mint, Option King, and Option Queen brands in a case involving a fraudulent binary options scheme.

Davis has been arrested and charged for allegedly defrauding investors through an elaborate international scheme that he ran out of Sandusky between 2012 and 2016. Davis was taken into custody by agents from the FBI and the IRS at Cleveland Hopkins International Airport back in June 2018.

The CFTC filed its complaint in the US District Court for the Northern District of Ohio charging Davis and his entities with fraud relating to the scheme involved over $10 million in fraudulent solicitations. The agency wanted penalties, disgorgement of ill-gotten gains, and permanent injunctions.

According to the regulator, Davis is indicted on two separate cases that carry over 20 charges, including wire fraud, money laundering, obstruction of justice, tax evasion and other crimes.

False names and qualifications

The court papers show that he was the leader of a binary options scheme that operated under various trade names, all tied to a firm called Erie Marketing LLC. Not only Davis’ business was not registered with the US relevant regulators, but he also wasn’t connecting investors to a legitimate exchange. Instead, he was taking the opposite position, making money only when his investors lost money, similar to a casino or sports bucks.

Davis pleaded guilty in April 2022 to tax evasion after he failed to file personal tax returns for tax years 2014, 2015, and 2016. Court documents state that he used this money to pay employee salaries, facility fees, fees to the companies that supplied the trading platforms.

Davis’ employees also falsely guaranteed profits, lied about their professional qualification, and misrepresented trading terms such as bonuses and risk-free trades.

Judge Zouhary sentenced Erie Marketing, LLC, to serve three years’ probation and to pay a fine of $4.4 million and restitution to all identified victims (a total the United States expects to be $650,000).

Today’s action is the latest in the US crackdown on binary options operatives after a series of reports uncovered massive fraud in the shady industry that had been centered in Israel. A few years ago, Lee Elbaz was convicted by a federal jury in connection with a vast binary options scheme to defraud investors all over the world. The fraud perpetrated by Yukom CEO, however, was more extensive and widespread as they swindled nearly 75,000 investors out of more than $145 million.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<