For immediate release: May 31, 2016
Contact: Stephanie Fleming, (573) 526-0949
Kander Stops Binary Options Scam of a Chesterfield Senior
Jefferson City, Mo. — Secretary of State Jason Kander issued a cease and desist order against internationally based RBOptions, Inc. and its unregistered agents, Jordan Gatsby and Joseph Wolf, for convincing an 82-year-old Chesterfield, Mo., resident to invest in unregistered binary option trades, resulting in a loss of $15,450.
“Investors should be able to trust that their hard-earned savings are in good hands, and my office will go after anyone that tries to take advantage of Missourians,” Kander said. “Before you invest, call my office to make sure the product and the person selling it are registered.”
The order alleges the Missouri investor wanted to find a company that could help her make trades online and contacted RBOptions in July 2014 after reviewing its website. During the initial call, a representative told the investor that a broker could make all the trades on her behalf if she didn’t understand the process. After the company assigned Gatsby as her broker, he told the investor that RBOptions would match any investment she made and would guarantee to cover any losses—which is unfortunately a tactic scam artists use often. The company’s website touted up to 88 percent profit and same-day withdrawal approvals with no questions asked.
She initially only wanted to invest the minimum amount of $250 and declined Gatsby’s suggestion to invest an additional $10,000. However, he charged her credit card without her permission, but the amount was refunded after the investor spoke with a supervisor. After her trades made a $3,800 profit with a loss of $750, she decided to invest $10,000 in November 2014 using her credit card.
After experiencing health issues, the investor attempted to withdraw her money, but was told Gatsby no longer worked with RBOptions and was assigned six other brokers, including Wolf, who would not release the funds. In January 2015, she discovered the company charged $5,000 to her credit card and has not been able to contact anyone since.
The phone number listed on the company’s website is based in Canada. In March 2014, the Ontario Securities Commission added RBOptions to its Investors Warning List, stating the company was not registered to trade securities or advise anyone to invest, buy or sell securities. In February 2016, the Financial and Consumer Affairs Authority of Saskatchewan, Canada, ordered RBOptions to cease trading and pay restitution to investors.
Kander’s order seeks restitution, fines and costs of the investigation.
A binary option contract is based on the investor’s prediction of an underlying security’s value at a predetermined date and has only two possible outcomes: the investor may receive a fixed amount of money for guessing correctly, or lose the entire investment for guessing incorrectly. Read about Kander’s alert urging Missourians to take caution when considering binary option investments: www.sos.mo.gov/default.aspx?PageId=7277.
Call the Investor Protection Hotline at (800) 721-7996 or visit www.MissouriSafeSavings.com for more information.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.