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CySEC fines WGM Services Ltd again
John Smith
The Cyprus Securities and Exchange Commission is taking binary options scams more and more seriously and is more ready than ever to prosecute companies that threaten customers of European Union. The last on the prosecuted list is WGM Services Ltd, the company behind EZTrader, a brand well known to CySEC as this is not the... Read more
The Cyprus Securities and Exchange Commission is taking binary options scams more and more seriously and is more ready than ever to prosecute companies that threaten customers of European Union. The last on the prosecuted list is WGM Services Ltd, the company behind EZTrader, a brand well known to CySEC as this is not the first time they are being punished. WGM Services Ltd violates Law CySEC Board fined WGM services with 340.000 euro fine for violating five different laws and directions: the Investment Services and Activities and Regulated Markets Law of 2007 the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 the Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs (‘Directive 1’) the Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the professional competence of Investment Firms and the natural persons employed by them (‘Directive 2’) the Directive DI 144-2007-08 of 2012 of the Securities and Exchange Commission for the Prevention of Money Laundering and Terrorist Financing (‘Directive 8’). This is not the first time that WGM Services, company that owns, EZTrader is being prosecuted. Remember, in summer of 2013 they didn’t process withdrawals as regulated by law, and were withholding traders’ money, while using the funds from their credit cards without prior authorization. We recognized this scam and immediately blacklisted this broker. CySEC first revoked the EZTraders license but reestablished it soon after. We at Fair Binary Options have zero tolerance to such unethical and unprofessional business behavior and left this broker on the Black List, where it belongs. More about EZTrader scams here. CySEC is becoming more and more strict Binary Options have been a gray area for a long time, but CySEC decided to put an end to it as it is becoming more and more determined to prosecute all companies that aren't obeying the law. Unfortunately, there are more and more scam brokers and companies, but luckily, CySEC decided not to tolerate any unethical business practices as they suppose threats not only for traders but for EU economy and security as well. Even though CySEC was not always fast enough to react or was indecisive when it comes to adequately punishing scam broker, it seems that things are changing. In an announcement published in November 2015, they not only gave notice about prosecuting WGM Services Ltd but also Reliantco Investments, Depaho Ltd and Pegase Capital Ltd, the company behind Interactive Options, another foul broker that FBO put on Black List on time. More about regulations of binary options can be found here. Besides the fine, CySEC also added a list of measures that must take place within two months. It is unclear what the consequences for brokers will be if they don’t implement the measures, but we can only hope that they will be severe. Interactive Options scam case Interactive Options was blacklisted because of fraud and unethical behavior. This broker and the company behind it, Pegase Capital Ltd who operates HelloBrokers as well, were ignoring withdrawal requests set by traders. They intentionally kept their deposit money and trade earnings, which is considered unethical and unprofessional business behavior, and is against all ethical conducts in the financial industry. Allegedly, they are also connected to other scams lurking in binary options industry like Binary Boom. In this process, CySEC charged them according to several violations of law and procedures: the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (‘L.144(Ι)/2007’), the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as amended from time to time (‘L.188(Ι)/2007’), the Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs (‘Directive 1’), the Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the professional competence of Investment Firms and the natural persons employed by them (‘Directive 2’), the Directive DI 144-2007-08 of 2012 of the Securities and Exchange Commission for the Prevention of Money Laundering and Terrorist Financing (‘Directive 8’). What is most interesting for traders and readers, is that Pegase Capital Ltd was providing unauthorized financial advice, was not protecting best interest of it's customers, and failed to act professionally and honestly considering bonuses. In addition, they used false advertising and failed to provide all information necessary to it's clients. FBO is fully committed to creating a safer trading environment and protecting its readers from scams, so we prefer to blacklist brokers as soon as suspicious activity occurs, even before the regulatory bodies notice irregularities, as it often takes a long time. In this action, CySEC fined Pegase Capital with 300,000 euro fine, but since the rumors about fraudulent activities can be heard for a longer time, it surprises us that CySEC didn't react sooner. We strongly advise not to trade with this broker but choose Binary Options Robot instead. CySEC Imposters There has been another scam lurking around. CySEC noticed the rise of individuals who impose as their officials, who are using web addresses very similar to those of CySEC and requiring additional payments. This scam is completely new in binary options industry and is a threat for all brokerage companies that are doing the best they can in obliging the law. In the announcement, CySEC warned that they are not a body authorized for payments between two legal subjects and asked the public to contact them in the case of receiving such message. CySEC contact can be found here. What is interesting is that CySEC didn’t regard the brokers who are using false certificates in order to deceive traders that they are trusted brokers. Not only that some scam brokers use the ‘top quality’ seals but also CySEC logo or ‘regulated’ icon. We hope that CySEC will address this concerning trend in nearer future. Read more about binary certificate scams.
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CySEC fines WGM Services Ltd again

The Cyprus Securities and Exchange Commission is taking binary options scams more and more seriously and is more ready than ever to prosecute companies that threaten customers of European Union. The last on the prosecuted list is WGM Services Ltd, the company behind EZTrader, a brand well known to CySEC as this is not the first time they are being punished.

WGM Services Ltd violates Law

CySEC Board fined WGM services with 340.000 euro fine for violating five different laws and directions:

  • the Investment Services and Activities and Regulated Markets Law of 2007
  • the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007
  • the Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs (‘Directive 1’)
  • the Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the professional competence of Investment Firms and the natural persons employed by them (‘Directive 2’)
  • the Directive DI 144-2007-08 of 2012 of the Securities and Exchange Commission for the Prevention of Money Laundering and Terrorist Financing (‘Directive 8’).

cysec (1)This is not the first time that WGM Services, company that owns, EZTrader is being prosecuted. Remember, in summer of 2013 they didn’t process withdrawals as regulated by law, and were withholding traders’ money, while using the funds from their credit cards without prior authorization.

We recognized this scam and immediately blacklisted this broker. CySEC first revoked the EZTraders license but reestablished it soon after. We at Fair Binary Options have zero tolerance to such unethical and unprofessional business behavior and left this broker on the Black List, where it belongs.

More about EZTrader scams here.

CySEC is becoming more and more strict

money-482596_1920Binary Options have been a gray area for a long time, but CySEC decided to put an end to it as it is becoming more and more determined to prosecute all companies that aren’t obeying the law. Unfortunately, there are more and more scam brokers and companies, but luckily, CySEC decided not to tolerate any unethical business practices as they suppose threats not only for traders but for EU economy and security as well.

Even though CySEC was not always fast enough to react or was indecisive when it comes to adequately punishing scam broker, it seems that things are changing. In an announcement published in November 2015, they not only gave notice about prosecuting WGM Services Ltd but also Reliantco Investments, Depaho Ltd and Pegase Capital Ltd, the company behind Interactive Options, another foul broker that FBO put on Black List on time.

More about regulations of binary options can be found here.

Besides the fine, CySEC also added a list of measures that must take place within two months. It is unclear what the consequences for brokers will be if they don’t implement the measures, but we can only hope that they will be severe.

Interactive Options scam case

Interactive Options was blacklisted because of fraud and unethical behavior. This broker and the company behind it, Pegase Capital Ltd who operates HelloBrokers as well, were ignoring withdrawal requests set by traders. They intentionally kept their deposit money and trade earnings, which is considered unethical and unprofessional business behavior, and is against all ethical conducts in the financial industry. Allegedly, they are also connected to other scams lurking in binary options industry like Binary Boom.

In this process, CySEC charged them according to several violations of law and procedures:

  • the Investment Services and Activities and Regulated Markets Law of 2007, as amended from time to time (‘L.144(Ι)/2007’),
  • the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as amended from time to time (‘L.188(Ι)/2007’),
  • the Directive DI 144-2007-01 of 2012 of the Securities and Exchange Commission for the Authorisation and Operating Conditions of CIFs (‘Directive 1’),
  • the Directive DI 144-2007-02 of 2012 of the Securities and Exchange Commission for the professional competence of Investment Firms and the natural persons employed by them (‘Directive 2’),
  • the Directive DI 144-2007-08 of 2012 of the Securities and Exchange Commission for the Prevention of Money Laundering and Terrorist Financing (‘Directive 8’).

What is most interesting for traders and readers, is that Pegase Capital Ltd was providing unauthorized financial advice, was not protecting best interest of it’s customers, and failed to act professionally and honestly considering bonuses. In addition, they used false advertising and failed to provide all information necessary to it’s clients.

FBO is fully committed to creating a safer trading environment and protecting its readers from scams, so we prefer to blacklist brokers as soon as suspicious activity occurs, even before the regulatory bodies notice irregularities, as it often takes a long time. In this action, CySEC fined Pegase Capital with 300,000 euro fine, but since the rumors about fraudulent activities can be heard for a longer time, it surprises us that CySEC didn’t react sooner.

We strongly advise not to trade with this broker but choose Binary Options Robot instead.

CySEC Imposters

There has been another scam lurking around. CySEC noticed the rise of individuals who impose as their officials, who are using web addresses very similar to those of CySEC and requiring additional payments. This scam is completely new in binary options industry and is a threat for all brokerage companies that are doing the best they can in obliging the law.

In the announcement, CySEC warned that they are not a body authorized for payments between two legal subjects and asked the public to contact them in the case of receiving such message. CySEC contact can be found here.

What is interesting is that CySEC didn’t regard the brokers who are using false certificates in order to deceive traders that they are trusted brokers. Not only that some scam brokers use the ‘top quality’ seals but also CySEC logo or ‘regulated’ icon. We hope that CySEC will address this concerning trend in nearer future.

Read more about binary certificate scams.

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