Additional signs are coming in that authorities around the world and in the U.S. are starting to get serious about combating both Binary Options and Forex scammers. The latest news was reported by the Times of Israel, which covered the conviction of an Israeli citizen for Forex fraud and his sentencing to three years in prison.
The website reported the following:
“Fadi Ewiess, a 39-year-old from the Arab village of Reineh, near Nazareth, was sentenced to three years in US prison for operating a website called Golden Bridge FX, which he used to solicit money from investors abroad. Instead of using investors’ money to trade in actual forex markets, Ewiess spent some of the money on personal expenses and gambling and used the rest to pay back earlier investors, in what was essentially a Ponzi scheme.”
This is the latest in series of arrests and other acts taken in Israel and elsewhere to curb the growth of Binary Options, Forex, and other online scams. As we discussed here, Israeli authorities are also taking legislative action to curb the binary options industry there.
These steps are a welcome development. Capturing and punishing these scammers is critically important in efforts to curb the spread of these scams. It will also hopefully deter others from even getting started.
Of course, there are many other scam sites still in operation and there are a number of countries hosting these scam sites that haven’t taken any action yet against them. There will have to be far more work done to make significant progress against these sites.
Beyond that, there is still much that needs to be done to protect users of these sites and to help victims recover their funds. While it is a good sign that scammers are being arrested and put in jail, it doesn’t help the victims if the money was already spent, as it was in this case.
It’s still imperative for victims to take action on their own to recover their money and protect themselves. We work with Binary Option and Forex scam victims every day and know how to work with credit card providers and financial institutions to help users recover their money.