Binary Options Trading Litigation - Online Scams and Fraud
Giambrone's latest Class Action against Plus500.
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 which can result in the loss of the entire investment. We strongly encourage investors to check the background of brokers and advisers and trading platforms and take time to research the firm to obtain simple background information, such as whether the financial professional you are dealing with is registered with the SEC, the FCA or CySec, before making a decision to invest.
Online scams are nothing new. From the rogue emails sent usually from allegedly 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).
The current round of binary options scams are quite uncomplicated. A company owns a website that looks like a legitimate binary options broker, using trading signals software. Once an initial investment appears to be successful, money then starts to leave the account and is lost. The broker will call to ask you to provide more money for a rescue plan. There are a number of strategies used by fraudulent brokers at this point, however the end result is always the same the website will fold – taking all of your deposits with it This is made more complicated by the fact they are often based outside the UK and in a country with a very scant regulatory environment.
If you are the unfortunate victim of this type of scam, regrettably the brokerage will leave little behind after it disappears. It can be very hard to find out who the owners are and – most importantly – how to begin the process of recovering the money you have lost. The lawyers at Giambrone are very aware that the loss of hard-earned investment savings can be financially and emotionally devastating. Also, that litigation and arbitration may be new to you. Our lawyers at Giambrone will guide you through the arbitration/litigation process to make as it easy and understandable as possible. During your initial consultation, we will listen to you and evaluate whether you have a valid claim. We will explain in clear terms 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 trading, please call Giambrone 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.