Secretary of State Jay Ashcroft’s Securities Division ordered Rumelia Capital to cease and desist after the firm allegedly sold unregistered, non-exempt binary options — risky, all-or-nothing wagers — to a Missouri investor.
The order also states that Rumelia, allegedly operated from Dublin, Ireland, failed to state material facts in order to obtain funds from a Missouri resident.
In late 2016, a Missouri resident invested $15,750 in Rumelia. Rumelia solicited the individual through email and promised good returns by trading in binary options. In early February 2017, Rumelia capital charged $4,000 to the investor’s credit card without her knowledge or consent. The investor received statements from Rumelia that showed the account value grew to $25,146. However, two weeks later the account had a balance of $14,646. The investor was unable to withdraw any funds from the account, and can no longer access the account. Rumelia will no longer answer telephone calls or emails from the investor.
“Overseas binary options firms operate in various ways — by sending emails, conducting telephone calls and providing online platforms for investors,” Securities Commissioner David M. Minnick said. “Regardless how these firms communicate with investors, you should verify that they are registered before providing them with access to your money or other confidential personal information.”
The division also ordered Rumelia to show cause why it should not be ordered to pay restitution, civil penalties and investigation costs totaling more than $145,000.
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