Peter Szatmari, Binary Options Fraud, Hawaii 2020

Peter Szatmari, formerly of Hawaii, has been ordered to pay over $13.8 million for perpetrating a fraudulent binary options scheme, according to a default judgment entered by the U.S. District Court for the District of Hawaii on September 14, 2020. The Commodity Futures Trading Commission (CFTC) initially filed the enforcement case on October 7, 2019.

Szatmari fraudulently solicited approximately 25,000 U.S. residents to open and fund binary options trading accounts. He and a business partner generated $3.8 million in fees while customers largely lost their investments, the CFTC stated. The court found Szatmari specialized in “affiliate marketing,” promoting binary options trading through deceptive online solicitations.

The judgment requires Szatmari to pay roughly $6.25 million in restitution to defrauded customers, $1.9 million in disgorgement, and a $5.7 million civil monetary penalty. He is also permanently prohibited from engaging in activities that violate the Commodity Exchange Act, registering with the CFTC, and trading on CFTC-regulated markets.

The fraudulent marketing campaigns featured actors posing as satisfied users of automated trading software, showcasing fabricated trading results. The CFTC complaint and court findings revealed that Szatmari knew the software was ineffective and that customers were highly likely to lose their money.

The CFTC cautioned that victims may not fully recover their losses due to potential limitations in the defendant’s assets. The agency stated it remains committed to protecting customers and holding perpetrators accountable. The SEC assisted in the investigation.

Allison V. Passman, Joseph Patrick, and Scott R. Williamson of the CFTC’s Division of Enforcement, along with former staff members Camille M. Arnold, Stephanie Reinhart, and Susan J. Gradman, were responsible for the case.

Source: CFTC.gov

Source: https://www.cftc.gov/PressRoom/PressReleases/8285-20