The CFTC (Commodity Futures Trading Commission) announced that it has filed a charges against Neil Pecker who founded the company called Vision Financial Partner for a fraud case that has to do with off exchange binary options. Pecker was accused of soliciting a sum of $3 millions from his clients starting from the October 2012 up until the present time. The fraud case is believed to involve at least 120 clients in the USA and Canada.
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Pecker was convicted to have diverted about $2 millions of the fund for his own personal use. The case was filed against Vision Financial Partners LLC in Deerfield, Beach Florida in the U. S. District Court in the south of Florida on the 16th February 2016.
According to CFTC, Pecker and his company Vision Financial Partner has tried to act as a Commodity Trading Advisor when they are not holding any valid license with the CFTC to do so. They have also attempted to act as an Associated Person of a CTA. The complaint that was submitted by CFTC also states 3 other related companies including Prometheus Enterprises, Incorporated; Westward International Limited; Coucarin Holdings, Limited that are also based in Deerfield Beach in Florida as being involved in the fraud.
There is another company called GDCM Trust that is based in Las Vegas, Nevada that is said to also involve in the fraud. These companies have been charged for receiving the funds without providing any services to the clients
Upon discovering that this is true, Judge James I. Cohn from the U.S. District Court has frozen the assets that belonged to Pecker and Vision Financial Partner. The court has froze the assets of the defendants on the 19th of February in 2016. The judge also issue a decree that prevent them from getting rid of the records so that the CFTC can perform further investigation.
Pecker is convicted of deceiving the clients with misleading and inaccurate information to the customers. There are a number of important facts omitted from the materials presented on the Vision Financial Partners website. His customers was not aware that their trading accounts are with an offshore company. He also failed to inform his clients that they won’t be able to withdraw their funds if they did not meet the minimum trade requirements.
Pecker and Vision has been permanently banned for offering binary trading services in the USA. They also receive a permanent injunction from the court about committing any violation against the regulation of the Commodity Exchange Act in the near future. The CFTC is currently seeking restitution for clients who have been defrauded by his scheme. CFTC has informed the defrauded clients that there is no guarantee that they will get back the money that they lost. This is because the entities involved in the fraud do not have enough funds or assets to pay back them.
CFTC will be doing his best in the court to make sure that the wrongdoers will be responsible for their actions. Binary options is a type of option that payout depending on if the client make the correct prediction and satisfy the requirement. If the client makes the wrong prediction, he will not get his money back from the investment.
In the past, the Canadian financial regulatory has issued a number of warnings to binary options brokerage firms that operate without a valid license. However, this is the first case where they were able to track down the ones that are behind the fraud and have them arrested.
The British Columbia Securities Commission has issued a warning against the fraud company. Vision Trading Advisors. Vision Trading Advisors states that its physical address is located in Fort Lauderdale, Florida.
The company was convicted for giving instruction to a Canadian citizen to sign up for an account with Binex Markets which is a company claimed to be headquartered in London. The Canadian citizen was then instructed to wire transfer the funds to the Vision Financial Partners bank account and the bank account that belong to the Relief defendants.
There are a number of CFTC staff that takes care of this case including Eugenia Vroustouris, Rick Glaser, Elizabeth Davis and Erica Bodin. CFTC often cooperate with financial regulators around the world to investigate the brokers against frauds. The CFTC has expressed their gratitude to those who are involved in helping them to investigate the case including New Brunswick Securities Commission, British Columbia Securities Commission, CySEC, FCA, and Ontario Securities Commission.
The CFTC is an organization set up to protect customers from unlawful schemes of binary options brokers such as identity theft, refuse to credit customers for in-the-money trades, and refuse to allow customers to withdraw as well as the use of software to manipulate the trades so that the customers lost money in the trades.