Over the years there had been many binary options scams exposed and that’s one of the main reasons why the European regulator ESMA decided to prohibit these instruments for retail customers. When it comes to the scam set into place by DAO Processing Ltd and GoldmanOptions, this is another example of how people can operate in a harmful way, using relatively the same method.
With the main goal of providing valuable information for people who want to be educated, and not to discredit any person involved in this scam, we would like to talk about this binary options scam had been designed and operated.
People involved and Beneficiaries
Luckily, the DAO – GoldmanOptions scam had been short-lived, thanks to the Czech Financial Market Supervisory Authority. The regulator warned GoldmanOptions in October 2016, three months after the company opened its Facebook page.
The scam had been operated according to a similar pattern designed by Israeli-based individuals. Based on official documents, the ultimate beneficial owners had been Orel Asformas (born April 1991), Ariel Hai Mazooz (born September 1983), and David Mor (born January 1993). All three had been behind the GoldmanOptions scam operated by the DAO Group Ltd, registered on the Marshall Islands. Two other important figures from the company are Genevieve Magnan and Jonathan Bibi, Seychelles citizens who acted as directors.
Scam made possible through Payment Operators
We mentioned DAO Group Ltd because the company was the only shareholder of DAO Processing Ltd, the operator of goldmanoptions.com, registered in the United Kingdom. Paula Gina Jonch-Olmez was a Belize citizen acting as the director of the operator.
This was a typical binary options scam from the GreyMountain Management environment, established with the help of offshore specialist Northwestern Management Services Ltd. We mentioned the company because it provided both Genevieve Magnan and Jonathan Bibi with trustee shareholders and officers right for this scam. The former is well-known for involvement in many other broker scams as an officer.
What’s also important for people to know is that the scam had not been possible without the help of two payment services providers: Payotech Ltd with PayObin Group and Moneta International UAB from Lithuania.
Moneta International had long been accused of being part of a big Israeli-based network of fraud. It worked on binary options websites with companies like Titrantrade, Icoption, Algocapitals, AlfaTrade, and others. We found disturbing the fact that the company holding money for all of the above-mentioned brands is Moneynetint, an FCA-regulated entity. It should be important for traders to be fully aware that these scams can bypass even the strongest regulators.
The bottom line is that retail traders should avoid working with brokers operating offshore and regulated by weak agencies. Choosing the right broker proves to be a challenging task, given the variety of frauds disclosed up until now. However, the DAO – GoldmanOptions scam proved once again that fraudulent activities are short-lived, most of the time. In this case, the Czech financial regulator had done a great job and revealed the scam relatively fast.