Israel’s state prosecutor moved against Gal Media Trade Ltd., which ran a binary options broker under the brand name iTrader between 2013 and 2016.
Charges will be filled against the company owners and several senior employees for aggravated fraud and giving investment advice without a license.
In case former iTrader employees are really charged, it will be a precedent, because until now no binary options operators were ever indicted in Israel.
Itrader.co.il sold binary options to customers in Israel, while FMTrader.com provided the service for international clients.
The Israeli prosecutors are taking action only in connection to possible fraudulent schemes against Israeli citizens.
According to the prosecution Gal Media Trade employees pressured clients, “exploiting their lack of experience and lack of understanding of binary options trading,” with “aggressive and fraudulent sales tactics, deceptive practices and hiding of crucial information”.
In this way the employees “misrepresented the risks and chances of success involved in binary options trading, lied about their experience and track record trading and managing client portfolios and pressured clients to use trading techniques that required a large investment of resources and led to huge customer losses”, the prosecution concludes.
Gal Media Trade was owned by Ido Fishman, who also employed call centers in the Philippines and Cyprus.
Since 2013 Gal Media Trade has been sued more than 30 times in Israeli courts, mostly by local investors.