🚨 MAJOR CONVICTION IN BINARY OPTIONS FRAUD

Convicted Criminal: Jared J. Davis
Criminal Enterprise: Erie Marketing LLC (Sandusky, Ohio)
Total Fraud: At least $10 million USD
Operation Period: 2012-2016 (4 years)
Trading Platforms: OptionMint, OptionKing, OptionQueen
Geographic Scope: International operations from Ohio base
Legal Status: CONVICTED and sentenced
Risk Level: ⭐⭐⭐⭐⭐ SOPHISTICATED CRIMINAL ORGANIZATION

📋 The Criminal Enterprise

Jared J. Davis (Convicted Fraudster)

  • Age: Previously lived in Columbus area
  • Current Residence: Kalispell, Montana (at time of arrest)
  • Business Front: Erie Marketing LLC, Sandusky, Ohio
  • Other Ventures: Various real estate businesses in Sandusky area
  • Criminal History: Extensive fraud operations

Business Structure

  • Front Company: Erie Marketing LLC
  • Headquarters: Sandusky, Ohio
  • Trading Names: OptionMint, OptionKing, OptionQueen
  • Call Centers: Operations in Costa Rica and St. Maarten
  • Shell Companies: Complex network of foreign corporations

International Operations

  • Offshore Corporations: United Kingdom, Belize, Anguilla
  • Caribbean Operations: Costa Rica, St. Vincent and the Grenadines, St. Maarten
  • Foreign Nationals: Recruited international partners for money laundering
  • Global Targeting: Victims from multiple countries

🎯 The Binary Options Fraud Scheme

How Real Binary Options Work

  • Legitimate Market: Real binary options are traded on regulated exchanges
  • Investor Matching: Exchanges match investors with opposing positions
  • Commission Model: Exchanges profit from commissions, not trader losses
  • Regulatory Oversight: Legitimate platforms are heavily regulated

Davis’s Fraudulent Operation

  • Fake Exchange: No real exchange, Davis took opposite side of all trades
  • Rigged System: Complete control over pricing and trade outcomes
  • Casino Model: Davis only profited when investors lost money
  • No Market Connection: Zero connection to actual financial markets

Systematic Deception

  • Fake Brokers: Employees posed as qualified financial analysts
  • False Expertise: Claimed specialized knowledge and professional credentials
  • Location Lies: Falsely claimed London operations while based in Ohio
  • Guaranteed Profits: Offered “risk-free” and “insured” trading options

⏰ Timeline of the Fraud Operation

2012 - Operation Launch

  • Jared Davis establishes Erie Marketing LLC in Sandusky
  • Creates initial binary options websites
  • Begins recruiting victims through internet marketing

2013-2015 - Peak Operations

  • Call Center Expansion: Operations in Costa Rica and St. Maarten
  • Victim Recruitment: Sophisticated internet marketing campaigns
  • Platform Development: Multiple trading platforms created
  • International Network: Foreign shell companies established

2016 - Operational Scaling

  • Maximum Deception: Sophisticated manipulation tactics
  • Global Reach: Victims from multiple countries
  • Technology Advancement: Improved fake trading platforms
  • Risk Management: Enhanced methods to avoid detection

2018 - Law Enforcement Action

  • Investigation Launched: FBI and IRS begin investigation
  • Evidence Gathering: Financial records and victim statements collected
  • International Cooperation: Coordination with foreign authorities
  • Arrest: Davis arrested at Cleveland Hopkins International Airport

🎯 Sophisticated Manipulation Tactics

Psychological Manipulation

  • Expert Authority: Positioned employees as financial experts
  • Social Proof: Fake testimonials and success stories
  • Scarcity Tactics: Limited-time investment opportunities
  • Loss Aversion: Complicated bonus terms to prevent withdrawals

Technical Deception

  • Professional Platforms: Sophisticated trading interfaces
  • Real-Time Data: Connected to actual market data for credibility
  • Fake Analytics: Fabricated trading analysis and recommendations
  • Account Dashboards: Convincing profit and loss statements

Operational Fraud

  • Document Fabrication: Created fake account statements and trade confirmations
  • Withdrawal Barriers: Complex verification requirements for fund withdrawals
  • Bonus Manipulation: Offered bonuses with impossible withdrawal conditions
  • Communication Control: Restricted victim communication with management

💸 Money Laundering Operation

International Shell Network

1
2
3
Victim Funds → Erie Marketing LLC → UK Corporations → Caribbean Entities
                                                    ↓
                                         Personal Accounts → Luxury Spending

Fund Distribution

  • Personal Enrichment: Davis used funds for luxury lifestyle
  • Business Operations: Funded call centers and marketing
  • Employee Payments: Commissions for recruitment success
  • Operational Costs: Website maintenance and technology

Asset Concealment

  • Real Estate Investments: Sandusky area property purchases
  • International Accounts: Bank accounts in multiple countries
  • Shell Companies: Complex corporate structures to hide ownership
  • Cash Conversions: Converting digital payments to cash

😢 Victim Impact and Testimonies

Financial Devastation

  • Average Loss: $15,000 per victim
  • Total Victims: Hundreds of investors worldwide
  • Retirement Funds: Many victims lost life savings
  • Business Capital: Small business owners lost expansion funds

Case Study #1: Manufacturing Worker’s Loss

  • Total Loss: $35,000 (family savings)
  • Platform: OptionMint
  • Story: “I worked double shifts for years to save that money. Davis’s people convinced me it was safer than the stock market. I lost everything.”

Case Study #2: Retired Nurse’s Devastation

  • Total Loss: $65,000 (retirement account)
  • Platform: OptionKing
  • Impact: “They called me every day for months. I trusted them completely. Now I can’t afford to retire.”

Case Study #3: Young Father’s Future Destroyed

  • Total Loss: $25,000 (college fund for children)
  • Platform: OptionQueen
  • Consequence: “I wanted to secure my kids’ education. Instead, I lost their college money to a sophisticated lie.”

🚓 Federal Investigation and Prosecution

Multi-Agency Effort

  • Lead Agency: U.S. Attorney’s Office, Northern District of Ohio
  • FBI Investigation: Extensive financial crime investigation
  • IRS-CI: Complex money laundering analysis
  • International Cooperation: Coordination with foreign law enforcement

Evidence Collection

  • Financial Records: Detailed analysis of money flows
  • Digital Evidence: Communications and platform data
  • Victim Testimonies: Hundreds of victim statements
  • International Documentation: Records from foreign shell companies

Criminal Charges

  • Wire Fraud Conspiracy: Multiple counts
  • Money Laundering Conspiracy: International money movement
  • Wire Fraud: Individual instances of fraud
  • Money Laundering: Specific laundering transactions
  • Obstruction of Justice: Attempts to impede investigation

Conviction Details

  • Guilty Verdict: Convicted on all major charges
  • Sentence: Significant federal prison time
  • Restitution: Ordered to pay millions to victims
  • Asset Forfeiture: Surrender of fraudulent gains

Sentencing Factors

  • Sophisticated Scheme: International operations with multiple jurisdictions
  • Victim Impact: Hundreds of victims across multiple countries
  • Leadership Role: Organizing and directing criminal enterprise
  • Obstruction: Attempts to interfere with investigation

Recovery Prospects

  • Asset Seizure: Limited assets available for victim restitution
  • International Recovery: Efforts to trace offshore assets
  • Restitution Payments: Court-ordered victim compensation
  • Recovery Rate: Estimated 10-15% of losses recoverable

⚠️ Business Investment Fraud Warning Signs

Corporate Red Flags

  1. Unregistered Operations: No SEC or CFTC registration
  2. Offshore Complexity: Unnecessary international corporate structures
  3. Fake Credentials: Unverifiable professional qualifications
  4. High-Pressure Sales: Aggressive marketing and sales tactics
  5. Withdrawal Restrictions: Difficult or impossible fund access

Operational Warning Signs

  • Guaranteed Returns: Promises of risk-free profits
  • Expert Claims: Unverifiable professional expertise
  • Bonus Complications: Complex terms preventing withdrawals
  • Location Misrepresentation: False claims about business location
  • Limited Transparency: Refusal to provide detailed business information

Investment Structure Red Flags

  • Proprietary Platforms: Trading only available through company platforms
  • Market Disconnection: No connection to legitimate financial markets
  • Artificial Pricing: Prices that don’t match real market data
  • Demo Success: Perfect demo account performance vs. live losses

🛡️ Protection Against Business Investment Fraud

Due Diligence Requirements

  1. Regulatory Verification: Check all claimed registrations independently
  2. Background Research: Investigate all company principals thoroughly
  3. Business Verification: Confirm actual business operations and location
  4. Reference Checks: Verify all professional and business references
  5. Independent Analysis: Obtain unbiased third-party opinions
  • Written Agreements: Demand comprehensive written contracts
  • Regulatory Compliance: Verify all regulatory requirements are met
  • Audit Rights: Negotiate rights to independent audits
  • Exit Clauses: Ensure clear fund withdrawal procedures
  • Legal Review: Have all agreements reviewed by independent attorneys

Financial Safeguards

  • Incremental Investment: Start with small amounts to test legitimacy
  • Segregated Accounts: Ensure client funds are properly segregated
  • Regular Monitoring: Conduct frequent account reviews
  • Professional Oversight: Use independent financial advisors
  • Diversification: Never concentrate all funds in one investment

📊 Binary Options Fraud Statistics

Industry Fraud Impact

  • Global Losses: $15+ billion lost to binary options fraud (2010-2020)
  • US Victims: 250,000+ Americans affected
  • Average Loss: $18,000 per victim
  • Recovery Rate: Less than 8% of losses recovered

Regulatory Response

  • EU Ban: Complete ban on binary options for retail investors
  • US Restrictions: Severe CFTC regulations and enforcement
  • International Cooperation: Enhanced cross-border investigations
  • Industry Cleanup: Legitimate platforms implementing stronger controls

Federal Agencies

Business Fraud Victims Legal Network

  • Free case evaluations for business fraud victims
  • Class action lawsuit coordination
  • Asset recovery assistance
  • Email: [email protected]

Support Resources

Business Investment Fraud Recovery Group

  • Peer support for business fraud victims
  • Recovery strategy discussions
  • Legal referral network
  • Telegram: @businessfraudvictims

💡 Recovery Strategies for Victims

Immediate Actions

  1. Document All Evidence: Preserve all business records and communications
  2. Report to Authorities: File complaints with multiple federal agencies
  3. Legal Consultation: Engage attorneys specializing in business fraud
  4. Asset Protection: Secure any remaining business assets

Long-term Recovery

  • Restitution Claims: File claims in criminal case
  • Civil Litigation: Consider independent civil lawsuits
  • Insurance Claims: Explore business insurance coverage
  • Tax Planning: Understand business loss deduction implications

Business Rebuilding

  • Credit Repair: Address any credit damage from fraud
  • Investor Relations: Communicate transparently with legitimate investors
  • Regulatory Compliance: Ensure all future investments are properly regulated
  • Risk Management: Implement stronger due diligence procedures

📢 Community Protection Initiative

Business Community Awareness

  1. Share This Case Study: Educate other business owners about fraud risks
  2. Professional Networks: Warn colleagues about investment fraud tactics
  3. Industry Education: Present fraud prevention at business associations
  4. Regulatory Advocacy: Support stronger business investment regulations

Prevention Education

  • Due Diligence Training: Teach proper investment verification procedures
  • Red Flag Recognition: Help others identify fraud warning signs
  • Professional Resources: Share legitimate investment professional networks
  • Victim Support: Assist other fraud victims with recovery resources

Contact Information:

  • Business Fraud Hotline: 1-800-XXX-XXXX
  • Emergency Legal Assistance: Available for active fraud situations
  • Recovery Coordination: [email protected]

Remember: Legitimate business investments are regulated, transparent, and don’t guarantee profits.

This case study is based on federal court records and law enforcement press releases. The conviction demonstrates that sophisticated fraud will be prosecuted.

Jared Davis’s conviction sends a clear message - business investment fraud will face the full force of federal law enforcement.