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Articles Posted in Binary Options

National Securities Corporation: Frequent Customer Disputes with FINRA on silverlaw.comHow the company has violated or been accused of violating FINRA regulations

It is always important for investors to have a good understanding of the financial professionals they work with. Before handing over money to anyone, brokers should be vetted properly. This is why the Financial Industry Regulatory Authority (FINRA) created its BrokerCheck reports.

Not only do these provide good information on where brokers are licensed and their work histories, but they also reveal customer disputes, discharges, and alleged improper activity. But these reports don’t just cover brokers – they also include their member firms.

Some of National Securities Corporation’s FINRA-Reported Brokers on silverlaw.comThese four brokers have been accused of numerous infractions

National Securities Corporation has been operating for decades and has offices and brokers all over the U.S. Unfortunately, however, a significant percentage of their brokers have been involved in numerous customer complaints. Here are just a few examples of how National Securities employees have allegedly violated FINRA rules:

James Eichner

Senior Citizens in Florida Reportedly Scammed into Investing in Fake Fish Farm on silverlaw.comSeveral older investors reportedly fell victim to the scam, including a former police officer

From 2013 to 2014, several senior citizens living in South Florida invested over $400,000 in Blue Ocean Farm, a fish farm company. Three purported financial professionals reportedly solicited funds for the farm – Rebecca Gonzalez and Matthew Braun of Boca Raton and Michael Creamer of St. Petersburg. There was just one problem: the Florida Department of Law Enforcement says that the company was completely bogus.

The scheme was allegedly spearheaded by Gonzalez, and now she, Braun, and Creamer are facing several charges, including fraud, selling unregistered securities, and the sale of securities by an unregistered person. The trio reportedly targeted six older investors, all of which handed over thousands of dollars.

Binary options have become a very powerful player in the financial sector. The reason for this is that they are a highly unregulated instrument and investors can make, at times, substantial gains. In fact, binary options are one of the financial transactions that is the closest to gambling in the financial marketplace today. When trying to understand binary options and what their corresponding risks are, it is wise to look at the conversation below:

A Basic Break Down

A binary option is an options contract where the profit paid out depends completely on the outcome of a yes/no question that is connected to the projected price of a specific asset and whether it will increase or decrease below a certain amount. What makes these particular options tricky to deal with is that the investor makes a profit or losses 100% of.  When the binary option expires, the current holder has no right to buy or sell. That said, when the binary option expires, the option holder gets the previously determined amount of cash or nothing.

In recent years, binary options have become a very popular tool to utilize for making substantial returns on investment. Given that this practice is rather new in comparison to traditional investment options, binary options still have a great deal of regulation to face in terms of protecting consumers from making investment transactions with these companies that they should not be. Where the SEC faces a great challenge in the United States is trying to ascertain how they can effectively regulate the binary options companies that are not based within the United States along with what measures they need to pass within the United States in order to regulate American entities as well.  Many bogus binary options firms operate from Israel or other foreign countries.

A Brief Overview of the SEC

The Securities and Exchange Commission’s purpose is to promote fair and just markets within the United States to protect American investors. They regulate many sectors of the financial investment field in order to enforce strict regulations in the financial sector and to also prosecute those that violate their financial regulations. The SEC also makes an effort to protect Americans from the fraudulent actions of foreign-owned financial companies. This is particularly true with regards to binary options.  Also, the SEC may bring fraud charges against a company.  However, most victims need to retain their own counsel to recover their losses.

Since there is not a great deal known about binary options fraud for the average consumer, it is no surprise that there is also very little known about how to approach a potential dispute regarding binary options fraud and what potential legal remedies are available. That said, there are options for individuals that have lost capital due to binary options fraud. When contemplating what legal course of action that you should take as a binary options fraud victim, it is best to consider the advice below:

How the Process Works

  1. Research Attorneys With Experience Recovering Investment Losses and Binary Options: It is highly recommended that you research experienced counsel. Our attorneys frequently represent investors in claims for securities and investment fraud.  Our lawyers frequently represent our clients in state or federal courts as well as securities arbitration.  Typically working on a contingency fee basis, we only get paid if we help you recover money.  We will not ask you to advance any fees or costs.

Unfortunately, binary options fraud victims have seemed to multiply rapidly in recent years. The reason for this is that many binary options firms have popped up both domestically and internationally with the objective of capitalizing on the lack of initial regulation on the binary options financial trading sector. For consumers that do not have a strong awareness of the financial sector, may find themselves falling prey to this scam as it has odds for investment returns that are truly too good to be true. If you have been a victim of such a scheme, it is wise to speak up and recover your investment.

What Potential Courses of Action Are Available

It can be daunting to try to ascertain what you can potentially recover from a binary options claim. Some popular forms of recovery of capital that have been successful are listed below:

Binary options have become a subject of heightened discussion in the financial sector since they appear like a good investment on the surface; however, bad binary option companies do not provide a viable potential for the user to have success in their trade. Their unpredictable activity has caught the attention of many governmental agencies around the globe that are trying to crack down on the fraud associated with them. Where this debate becomes the most intense is when financial experts are discussing whether there is a possibility to recover a gain even though the trader has had so many losses. This hidden aspect of binary options makes them exceedingly unreliable for traders to pursue. In order to fully understand what a “loss” means for binary options, consider the conversation below:

What Does a Loss Actually Mean?

Where the issue of a “loss” becomes paramount is when dealing with high-low binary options. In this instance, the trader will have more losses than they will gains in many circumstances. This is where it become quite difficult to recover the money that was invested as well as any potential gains that may have occurred on a series of transactions since losses are more common than gains across the board. Granted, this will differ depending on the broker involved; however, it is the constant that has remain standard across the board in terms of investing in binary options.

Binary options are a trading mechanism that have taken many governmental agencies by surprise. The reason for this is that, in many cases, they appeared out of thin air. Due to the wide variety of financial transactions that are appearing on the Internet, it has become increasingly difficult in order to regulate how consumers can be protected. One of the pioneers of binary options protection to consumers has been the United States. The Securities and Exchange Commission (SEC) is the governmental agency that protects consumers from fraud circumstances of this nature. Due to the influx of fraud in the financial trading sector, the SEC has subsequently created the CFTC in order to handle regulation and recommendations with the objective of protecting Americans consumers that have fallen prey to many unfortunate investment schemes.

The CFTC’s Role

The Commodities Futures Trading Commission’s Office of Consumer Outreach (CFTC) issues warnings regarding fraudulent schemes that involve binary options and their various, yet diverse, trading platforms. Many of these schemes have historically refused to credit the consumer’s accounts, have withheld fund reimbursement, identity theft, and the tampering with software to generate more losing trades than winning ones. On a regular basis, the CFTC issues a report and warnings regarding the latest in fraud in the financial sector. Some of the most typical recommendations that are reported to the CFTC are mentioned below.

Binary Options Fraud Attorneys

The Internet has opened up consumers to a great deal of freedom in terms of what financial institutions and companies they are able to invest their capital with. With this diversification, there has also been a pool of risk that has opened up as well. These days, binary options are still an item in the financial investment sector that many consumers are not aware of if they have not studied the financial sector extensively. It is wise for those considering investing to work with an experienced broker that is licensed under U.S. regulatory bodies to help make sound investment decisions.

Background on Binary Options

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