SEC’s action against binary options marketer may be dismissed

The Massachusetts District Court warns that it could dismiss the action against a binary options marketer who forced 25,000 investors to make deposits with unregistered companies.

Almost four months have passed since the U.S. Securities and Exchange Commission (SC) launched an action against Peter Szatmari, who created and disseminated false and misleading Internet promotional material designed to entice website viewers binary options brokers and encourage them to open and finance binary options trading accounts. However, procedural formalities can lead to the closure of the file.

On January 13, 2020, the Massachusetts District Court issued a notice warning that it could dismiss the case. The document, seen by FinanceFeeds, notes that the SEC action was filed on September 27, 2019. To date, however, there has been no return to the Court of evidence from the service of the summons and complaint as required by the Federal Rules of Civil Procedure.

As a result, the SEC action will be dismissed without prejudice within fourteen (14) days from the date of the order, unless proof of service is filed or a valid reason justifies the meaning of meaning.

Note that another American regulator – the Commodity Futures Trading Commission (CFTC), has also launched an action against Szatmari. The CFTC admitted that it was unable to contact the accused by traditional means, so the Hawaii District Court issued an order authorizing the regulator to serve Peter Szatmari by posting a notice in the Hawaii Star Advisor.

According to the SEC complaint, between 2014 and 2016, Szatmari participated in the creation and dissemination of at least six false and misleading marketing campaigns intended to persuade potential investors, mainly in the United States, to Open and finance binary options trading accounts with non-registered overseas. brokers operating on the Internet. The publicity material for these campaigns generally consisted of (a) textual material disseminated on the Internet; (b) a website; and (c) one or more videos integrated into the website.

The deceptive websites and videos were viewed by over 350,000 people and prompted over 25,000 investors to make deposits to trade binary options with one of some 35 unregistered brokers. These unregistered brokers have offered and sold binary options listing securities on the Internet to investors in the United States.

The SEC estimates that Szatmari and his partner David Sechovicz made approximately $ 3.8 million in profit from the six campaigns launched between 2014 and 2016. They also broadcast false and misleading binary marketing campaigns created by others affiliate marketers. The duo made about $ 1.66 million in additional profits through remarketing.

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