US DoJ Charges Binary Options operator with financial crimes. Blake Kantor, also knows as “Bill Gordon” has been charged with conspiracy to commit wire fraud, making false statements to Special Agents and FBI, and obstruction of an official proceeding.
18 April, AtoZ Markets – The US Department of Justice has informed a public that a three-count indictment was unsealed in federal court in charging Blake Kantor. Blake Kantor, also knows as “Bill Gordon” has been charged with conspiracy to commit wire fraud, making false statements to Special Agents and FBI, and obstruction of an official proceeding.
US DoJ Charges Binary Options Operator with Financial Crimes
It is known that Kantor has been arrested by federal authorities yesterday and charged. The official indictment is alleging that back in March 2014 Blake Kantor has set up a company that is entitled as Blue Bit Banc or Blue Bit Analystics, Ltd. The firm has been selling Binary Options. In order to establish BBB, Kantor has used around $10,000 that has been taken from a bank account that was set up with a TD Bank branch located in Suffolk County.
In the period between 2014 to 2017, Kantor along with others solicited and obtained approximately $2.1 million from around 713 investors in the binary options. Reportedly, Kantor did not inform those customers that a computer software used by the entity has allowed BBB to fraudulently change data linked to the Binary Options investments.
Kantor also ordered the opening of bank accounts, these including one in the island nation of Saint Kitts and Nevis. He has used aliases and the personal information of other people. Kantor has then converted funds that investors put into ATM Coin. The latter was a cryptocurrency that Kantor has misrepresented to investors, saying it was worth a lot of money.
FBI, IRS and CFTC Join Forces
As it is also stated in the Indictment, back in October 2017 Kantor has ordered his co-conspirator to change lists of BBB customers following the FBI informing him about their investigation into his Binary Options involvement.
Following on this, Kantor met with FBI agents and falsely stated that he had not been involved in Binary Options since August 2013. However, in reality, he had set up BBB around March 2014. He also has been involved with this company until October 2017.
According to the statement of the IRS-CI Special Agent-in-Charge Robnett:
“In addition to enforcing the nation’s tax laws, the Special Agents of IRS-Criminal Investigation take particular interest in cases where our expertise is warranted to uncover allegations of financial fraud. The allegations outlined in this indictment detail acts of deceit and offshore money movement in the evolving world of cryptocurrency, which impacts the trust investors have with our financial system.”
In addition, the CFTC Division of Enforcement Director McDonald has added that his agency is ready to work with the law enforcement to make sure that fraudsters in the financial markets of the US are brought to justice.
In case the fraudster in question convicted, he will face a maximum term of imprisonment of 20 years.
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