CFTC Charges New Yorker in Binary Option CPO Fraud
Recently, the CFTC filed an action against Kevin Scott Antonovich alleging from September 2015 through August 2016 he fraudulently solicited and received approximately $284,000 from at least 154 pool participants in connection with pooled investments in off-exchange binary options, using the funds for his personal use, and making false and misleading representations to pool participants. A binary option is a type of options contract in which the payout depends entirely on the outcome of a yes/no proposition and typically relates to whether the price of a particular asset will rise above or fall below a specified amount. Binary options have been the subject of many investigations and actions.
According to the Complaint, Antonovich told pool participants that his trading for the pool would occur on a CFTC-registered exchange when, in fact, all trading occurred on offshore platforms. As further alleged, Antonovich issued numerous updates to pool participants falsely claiming that his trading for the pool was profitable. In addition, when pool participants sought payouts from the pool, Antonovich falsely claimed that funds were available to be paid out and fabricated trading account and bank documents to give pool participants the false impression that funds were available to satisfy not only return of principal funds, but also payment of purported profits.
Any registered or non-registered company that receives a CFTC investigative demand should consult competent counsel immediately to discuss the investigative process.
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