The Federal Court found One Tech Media Ltd, (OTML), Allianz Metro Pty Ltd, Eustace Senese and Yoav Ida in breach of the Corporations Act for pressure sale of binary options.
The Seychelles-based company OTML was caught trading binary options without Australian Financial Services Licence (AFSL) and without providing the necessary product disclosure statements.
Justice Davis found OTML’s conduct unconscionable and misleading Australian customers by making false statements.
Her Honour noted that:
The evidence revealed a deliberate deception of vulnerable people to trap them into parting with their money in a way that deprived them of any opportunity to recover it.
The Australian firm Allianz Metro Pty Ltd along with Eustace Senese and Yoav Ida were found to have collaborated with OTML and helping the company collect funds. By arranging for OTML to issue binary options, the entities executed financial services without holding an AFSL. Senese and Ida also failed to issue requisite product disclosure statements when trading with binary options.
ASIC Commissioner Danielle Press, commented:
ASIC’s litigation has provided clarity to otherwise grey areas of the law. This is ultimately to the benefit of both ASIC, industry and most importantly, consumers.
ASIC will now seek that the defendants pay civil penalties and the disqualification of Eustace Senese and Yoav Ida.