Giambrone has now secured a market-leading position in the worryingly fast growing niche of forex and binary options litigation, a position that is being increasingly recognised by both our clients and the media internationally, such as The Times of Israel, The Jewish Chronicle, Finance Magnates, The Wall Street Journal, The Sunday Times to name just a few.
The combination of Giambrone’s background in forex and binary options litigation coupled with our particular experience in financial technology, our ability to successfully resolve cross-border multi-jurisdictional disputes together with our assertive approach to litigation means we were ideally placed to take charge of binary options cases.
Giambrone represents investors in binary options, forex and securities arbitrations and litigation worldwide. We have successfully represented thousands of individual investors in binary options, forex and securities fraud lawsuits and arbitrations, with combined claims of millions of dollars. Our experience also includes the representation of registered representatives/brokers in regulatory investigations and disciplinary proceedings.
Binary Options Trading Litigation
In simple terms a binary option is a financial option in which the pay-off is either a fixed monetary amount or nothing at all. There are two types of binary option; the first is a cash-or-nothing option which pays a fixed amount of cash if the option expires in profit or an asset-or-nothing option which will pay the value of the underlying security. Binary options are securities in the form of options contracts where the payout depend on whether the underlying asset increases or decreases in value. They’re called “binary” options because unlike other derivatives sold on the capital markets, there are only two options here: profit or loss. In such an all-or nothing payout structure, investors betting on a stock price increase face two possible outcomes when the contract expires: they either receive a pre-determined amount of money if the value of the asset increased over the fixed period, or no money at all if it decreased.
Investors should be aware of the potential for fraud in this area as well as of the reality that they can lose their entire investment. We strongly encourage investors to check the background of brokers and advisers and trading platforms before making a decision to invest. If investors can't obtain simple background information such as whether the financial professional is registered with the SEC, the FCA or CySec, then they should be extremely wary
Online scams are nothing new. From the rogue emails sent usually from Nigerian wealthy individuals who offer to share their inheritance in return with some help in moving funds around (and with the aim of seeking your bank account details), then came phishing; look-a-like emails sent by fraudsters on behalf of your bank to see if you’d be kind enough to log-on and provide them with open access to your accounts.
It seems that however many ways legitimate businesses come up with to help us transact more easily, the fraudsters are only one step behind, armed with a new way to use the latest vogue to relieve us of our hard earned cash. The latest to hit the headlines is binary options (or as they can also been known as all-or-nothing options, digital options and fixed return options) trading. An increasing number of binary option outlets (and even the quickest Google search will show you just how many players there are), and particularly those operating outside the regulated financial markets, are actually scams.
The scam itself is simple. A fake company owns a website that looks like a legitimate binary options broker. They will create trading signals software that promises all sorts of accuracy and makes guarantees designed to settle the nerves of a would be investor so that they deposit an initial sum. This is lost but a broker will call to ask you to deposit more. This will perform well and you will be offered opportunities to increase your investment. At that point either the website will fold – taking all of your deposits with it – or you will be asked to top up your pot to the level where you can make a withdrawal … at which point the website will fold taking all of your deposits with it. This is made more complicated by the fact they are most likely based outside the UK – Israel has the dubious honour of fast becoming the international leader - and in a country with a very scant regulatory environment.
If you are the unfortunate victim of this type of scam, this is where life gets particularly difficult. If the brokerage is a fraud it will leave little behind after it disappears. It’s very hard to find out who the owners are, how to get hold of them and – most importantly – how to begin the process of recovering the money you’ve invested and lost. The loss of hard-earned investment savings can be financially and emotionally devastating. Litigation and arbitration may be new to you. We will guide you through the arbitration/litigation process to make it easy and understandable. During your initial consultation, we will listen to you. We will evaluate whether you have a valid claim. And, we will clearly explain what you can expect from us and what we will expect from you so, together, we can successfully achieve your goals.
Giambrone will continue to fight vigorously for your protection and to ensure the wrongdoers are held accountable.
If you have found yourself victim to Online Scams and Fraud related to Binary Options, give us a call and we will talk you through the options and help you start the slow process of recovering your assets. Alternatively, please contact our Client Relations Team to arrange a discussion with a lawyer in the Binary Options Litigation team. Our international lawyers are able to provide assistance in English, French, Spanish, German, Arabic and Chinese.