SEC Charges Three Individuals with Deceiving Main Street Investors Through the Sale of Binary Options
The SEC charged Gil Beserglik, Raz Beserglik, and Kai Christian Petersen with defrauding U.S. and foreign investors, including vulnerable retirees, out of tens of millions of dollars through fraudulent binary options brokers by operating deceptive boiler room call centers that profited only from investor losses and blocked withdrawals.
The SEC charged Gil Beserglik, Raz Beserglik, and Kai Christian Petersen with violating federal anti-fraud and registration laws by orchestrating a scheme through three fraudulent binary options brokers—Bloombex Options, Morton Finance, and Starling Capital—that defrauded investors of tens of millions of dollars. Operating high-pressure 'boiler room' call centers in Germany and Israel, their employees lied about their identities, expertise, and profit model, falsely claiming brokers earned money only when investors did, when in reality they profited exclusively from investor losses. Most investors lost everything, with some retirees losing their entire life savings, and brokers routinely refused withdrawal requests, prompting the SEC to seek disgorgement, prejudgment interest, civil penalties, and permanent injunctions.
The SEC charged Gil Beserglik, Raz Beserglik, and Kai Christian Petersen with orchestrating an international fraud scheme that cost U.S. and foreign investors, including vulnerable retirees, tens of millions of dollars through fraudulent binary options brokers Bloombex Options, Morton Finance, and Starling Capital. The defendants operated high-pressure 'boiler room' call centers in Germany and Israel, where employees impersonated licensed traders, concealed their true identities and locations, and falsely assured investors that the brokers only earned money when investors made profits—when in fact, the brokers profited solely from investor losses. Investors were aggressively pressured into depositing large sums into trading accounts, often depleting their savings, with many retirees losing their entire life savings. The brokers routinely refused to honor withdrawal requests, effectively trapping investors’ funds. The SEC’s complaint, filed in federal district court in central California, alleges violations of federal anti-fraud and registration provisions of the securities laws. The agency seeks disgorgement of all ill-gotten gains, prejudgment interest, civil monetary penalties, and permanent injunctions to bar the defendants from future securities activities. The investigation was led by SEC staff Jason Anthony, Michael Fuchs, and Deborah Maisel, with litigation handled by Kenneth Donnelly and Samantha Williams, underscoring the SEC’s commitment to holding foreign fraudsters accountable for targeting retirement savings.
Exhibits & Attached Documents (1)
Extracted insights
- agency associate director in sec enforcement division
- company bloombex options, morton finance, starling capital
- scheme_term boiler rooms
- person call center employees
- court federal district court in central california
- person individual retirees
- person investor losses
- person Jennifer Leete
- person melissa r. hodgman
- person most investors
- company names, location, expertise in trading securities
- agency sec investigation
- agency sec litigation against defendants
- agency Securities and Exchange Commission
- SEC charged Gil Beserglik, Raz Beserglik, Kai Christian Petersen
- Gil Beserglik, Raz Beserglik, Kai Christian Petersen deceived U.S. investors including vulnerable retirees
- Defendants caused investors to lose tens of millions of dollars
- Defendants operated Bloombex Options, Morton Finance, Starling Capital
- Call centers in Germany and Israel operated as boiler rooms
- Call center employees lied to investors about names, location, expertise in trading securities
- Call center employees falsely told investors brokers only earned money if investors made money
- Brokers earned money from investor losses
- Most investors lost money trading binary options through three brokers
- Individual retirees lost entire savings amounting to hundreds of thousands of dollars
- Brokers refused to honor investor requests to withdraw money
- SEC filed complaint in federal district court in central California
- SEC seeks disgorgement of ill-gotten gains, prejudgment interest, financial penalties, permanent injunctions
- Jason Anthony, Michael Fuchs, Deborah Maisel conducted SEC investigation
- Jennifer Leete supervised SEC investigation
- Kenneth Donnelly, Samantha Williams leading SEC litigation against defendants
- Melissa R. Hodgman is Associate Director in SEC Enforcement Division
The Securities and Exchange Commission today charged three foreign individuals, Gil Beserglik, Raz Beserglik and Kai Christian Petersen, with deceiving U.S. investors, including vulnerable retirees, and causing them to lose tens of millions of dollars through fraudulent, online sales of high-risk securities known as binary options. According to the SEC's complaint, the defendants conned U.S. and foreign investors out of tens of millions of dollars through three online binary options brokers, Bloombex Options, Morton Finance and Starling Capital, by the allure and promise of quick profits. The SEC alleges that defendants utilized call centers in Germany and Israel which operated as "boiler rooms," in which salespersons used high pressure sales tactics to offer and sell speculative binary options to vulnerable investors. Employees at these call centers allegedly persuaded investors to open binary option trading accounts and deposit large sums into those accounts. According to the complaint, call center employees lied to investors about their names, location and expertise in trading securities and they falsely told investors that the brokers only earned money if investors made money. In reality, the brokers earned money only from investor losses and thus had no incentive to advise investors on how to trade binary options profitably. The complaint alleges that most investors who traded binary options through the three brokers lost money, and some individual retirees lost their entire savings amounting to hundreds of thousands of dollars. The SEC also alleges that the brokers largely refused to honor investor requests to withdraw money from their trading accounts. "For some victims, this international scheme cost them their entire life savings," said Melissa R. Hodgman, Associate Director in the SEC's Enforcement Division. "This action reflects the SEC's continued pursuit of those that drain the retirement accounts of vulnerable investors, including those who perpetrate their fraud from abroad." The SEC's complaint, filed in federal district court in central California, charges Gil Beserglik, Raz Beserglik and Kai Christian Petersen with violating the anti-fraud and registration provisions of the federal securities laws, and seeks disgorgement of ill-gotten gains, prejudgment interest, financial penalties and permanent injunctions against all three defendants. The SEC's investigation was conducted by Jason Anthony, Michael Fuchs and Deborah Maisel and supervised by Jennifer Leete. The SEC's litigation against Gil and Raz Beserglik and Petersen will be led by Kenneth Donnelly and Samantha Williams.
The Securities and Exchange Commission today charged three foreign individuals, Gil Beserglik, Raz Beserglik and Kai Christian Petersen, with deceiving U.S. investors, including vulnerable retirees, and causing them to lose tens of millions of dollars through fraudulent, online sales of high-risk securities known as binary options. According to the SEC's complaint, the defendants conned U.S. and foreign investors out of tens of millions of dollars through three online binary options brokers, Bloombex Options, Morton Finance and Starling Capital, by the allure and promise of quick profits. The SEC alleges that defendants utilized call centers in Germany and Israel which operated as "boiler rooms," in which salespersons used high pressure sales tactics to offer and sell speculative binary options to vulnerable investors. Employees at these call centers allegedly persuaded investors to open binary option trading accounts and deposit large sums into those accounts. According to the complaint, call center employees lied to investors about their names, location and expertise in trading securities and they falsely told investors that the brokers only earned money if investors made money. In reality, the brokers earned money only from investor losses and thus had no incentive to advise investors on how to trade binary options profitably. The complaint alleges that most investors who traded binary options through the three brokers lost money, and some individual retirees lost their entire savings amounting to hundreds of thousands of dollars. The SEC also alleges that the brokers largely refused to honor investor requests to withdraw money from their trading accounts. "For some victims, this international scheme cost them their entire life savings," said Melissa R. Hodgman, Associate Director in the SEC's Enforcement Division. "This action reflects the SEC's continued pursuit of those that drain the retirement accounts of vulnerable investors, including those who perpetrate their fraud from abroad." The SEC's complaint, filed in federal district court in central California, charges Gil Beserglik, Raz Beserglik and Kai Christian Petersen with violating the anti-fraud and registration provisions of the federal securities laws, and seeks disgorgement of ill-gotten gains, prejudgment interest, financial penalties and permanent injunctions against all three defendants. The SEC's investigation was conducted by Jason Anthony, Michael Fuchs and Deborah Maisel and supervised by Jennifer Leete. The SEC's litigation against Gil and Raz Beserglik and Petersen will be led by Kenneth Donnelly and Samantha Williams.