The Commodity Futures Trading has filed a fraud and misappropriation case against William Thomas Caniff, his company, Berkley Capital Management, LLC (BCM) and two investment pools that BCM operated as Delaware limited partnerships, BBOT 1, LP (BBOT) and Berkley II, LP.
The US regulator revealed that the US Federal Court has ordered the defendants to pay $2,598,632 in restitution and a $3.6 million civil monetary penalty in connection with a binary options fraud scheme.
Furthermore, the court has entered a permanent injunction, restitution, and a civil monetary penalty order against Caniff’s partner, Arie Bos. In the official announcement, the CFTC stated that Bos will be liable to pay the $2,598,632 in restitution in addition to a $500,000 civil monetary penalty.
Case Background
According to the CFTC, Caniff parented with Bos in 2016 in BCM. The company offered two pools for trading forex binary options through accounts at NADEX. Caniff, who is known to be a convicted felon, opened a trading account at NADEX by concealing his criminal record.
Between February 2016 through September 2018, 58 pool participants were solicited in the scheme and invested over $3.3 million. All participants in these pools were based in the Netherlands with the exception of one US participant.
