Investigation into Binary fraud continues – “No customer ever made a profit in the company where I worked”

January 18, 2017 Industry News Tags: , , , , 0 Comments

As the debate surrounding binary options fraud continues to mount, staggering testimony provided by a previous ex-binary options employee at a recent hearing held by Israel’s Knesset State Control Committee has come to light. Responsible for overseeing financial regulation, the committee convened to discuss how law enforcement agencies in Israel can regain control of the country’s increasingly growing, fraudulent binary options industry.

Head of the Israeli Securities Authority Shmuel Hauser, along with representatives from the attorney-general’s office, Justice Ministry and victims of binary options fraud, made up a panel of speakers who are pushing for new legislation to ban the industry altogether. Among them was Adam Nujidat, an ex-binary options industry employee who testified at the hearing. “No customer ever made a profit in the company where I worked” said Mr Nujidat, who took a position with the unnamed firm without any knowledge of the services they provided.

Another panel member, 82 year old Graham Towler spoke of how he was fleeced more than A$110,000 trading with a binary options provider. “I have to continue to work at the age of 82 to recover some of the debt I am in,” he said.

Locally, the Australia Securities and Investments Commission (ASIC) has been warning investors of the potential to fall victim to binary options. “We urge anyone interested in trading in binary options or other derivatives to make sure they understand what they are getting into” said ASIC Commissioner Cathie Armour. A statement made in a press released published by ASIC back in Feburary 2015 mentions that ‘ASIC’s surveillance of the binary options industry continues’.

Ms Armour also mentioned during their investigation into unlicenced financial trading entities that “Dealing with licensed financial services providers that are regulated by ASIC affords certain protections to investors and imposes specific obligations that do not apply to unlicensed providers.”

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