Scam Alert: US Based Binary Options Traders Stay Clear of NYStockOptions
NYStockOptions is Really Not What you Think. Warning!
New York Stock Options, or NYStockOptions.com, is perpetrating a binary options scam on serious levels. This story was first broken by the Southern Investigative Reporting Service as part of an expose on fraudulent investment services in the U.S. Banc De Binary made headlines around the world when the U.S. CFTC cracked down on them and their alleged U.S. operations. Now a new broker is trying to capitalize on a loose connection to New York City and false claims of regulation to attract American based traders. What they are going to attract is the attention of the CFTC and the SEC. NYStockOptions.com claims to have a New York office but this is not true. The company is actually located in Belize and only uses the New York address for mailing only. This makes sense as spot binary options such as this platform are not allowed to open businesses in the U.S. The address, 41 Madison Avenue 31st floor is a virtual office space run by Regus offering a wide variety of services including mailing, email and phone answering.
Claims of regulation, registration and association with the U.S. marketplace are also false. The broker claims to regulated and certified by an organization called the IFRA, or Independent Financial Regulatory Authority, an organization regulating international financial businesses with no mandate or authority from any government. The purpose of the IFRA is to provide investor protection through certified brokerages, mediation and arbitration but with no official standing or recognition has very little actual power, if any at all. The website hosts a page called US Regulations with links to the 2008 rulings by the SEC and CFTC to allow exchange traded 0-100 style binary options. This broker does not offer CFTC or SEC approved binary, it offers international spot binary which is not CFTC approved.
Folayan Financial Holdings Warning
The Southern Investigative Service discovered NYStockOptions.com and a sister website called NYSOHedge.com. The NYSOHedge.com is operated by NYStockOptions.com as a hedge fund and managed account trading service with minimums of $50,000. These two broker/services are the recommended form of investment by a fraudulent scam investment service in the U.S. The scam, set up by one Obawtaye Folayan, appears at first glance to be a legitimate Delaware registered U.S. investment company. The website offers a wide variety of financial products including insurance, equities and other investments. What the reporters at SIRF discovered is that it is nothing more than a sham site up to conceal what in the least is an affiliate marketing scam for the aforementioned brokerages. Since the story first broke NYSOHedge.com has been shut down and moved to a new address, NYSOExchange.net.
Who is Folayan? He is an immigrant to America who earned a Finance degree from Delaware State and then a Master Of Education at Rider University before going on to become a school principle. After a criminal conviction Folayan was forced to resign at which time he tried his hand at many things before settling on opening up a financial services website and business. The business itself is chartered in Delaware but is as yet unlicensed, unregulated and illegally advertising investment services. SIRF reports that there is no record of Obawtaye ever having been licensed as a financial services provider.
Click here for the full story on SIRF-Online.org