Banc De Binary Settlement
The SEC has issued an alert after entities impersonating the regulator requested that clients to pay a fee for settlements.
Binary options provider Banc De Binary been the subject of predatory opportunism, after scammers pretending to be associated with the SEC have tried to squeeze funds out of Banc De Binary clients, on the heels of the major settlement signed last month.
Last month, Finance Magnates reported that Banc De Binary Settlement was hit with fines in excess of $11.0 million from the US’ Commodities and Futures Trading Commission (CFTC). The fine followed after what had been a multi-year investigation since 2013 that included $7.1 million in restitution and disgorgement, $2 million in civil penalties, and a further $1.95 million in civil penalties to the SEC.
The original case stemmed from the improper solicitation of American customers via such mediums as YouTube, spam e-mails, and other internet advertising methods. Banc De Binary had failed to properly register as a broker-dealer prior to communicating directly with the aforementioned clients by these methods, prompting an SEC investigation and eventual fine.
Impersonators Fishing For Funds
However, since last month’s settlement with the SEC, the regulator became aware that a number of harmed Banc De Binary Settlement clients were being contacted by individuals impersonating affiliates associated with the SEC. These individuals claimed that clients needed to pay a fee to facilitate the settlement process with Banc De Binary, adding a new chapter of drama to a case that had all but reached a resolution.
For its part, the SEC has reiterated its stance that any such attempts or bids to achieve settlement between clients and other parties are done without any fees – anything to the contrary should be deemed as a fraudulent entity or one not actually associated with the SEC. For individuals who have questions about the settlement distribution in the Banc De Binary case, the SEC has recommended individuals to contact the National Futures Association (NFA) at 800-621-3570.
Shortly after publication Finance Magnates received comments from a Banc De Binary spokesperson, “Banc De Binary Settlement is cooperating with the SEC and CFTC to find those responsible for these fraudulent solicitations. As the SEC stated: “It’s important for all investors to know that the SEC never makes people pay to get their money back”.