The two set up managed accounts services using fake information.
Jana Jaros and Jackson Laurence Malcom Capper were permanently banned in Australia, after the pair were convicted and sentenced in November, following a raid conducted by the Queensland Police in conjunction with the Australian Securities & Investments Commission (ASIC).
From February to December 2015, the two set up managed accounts services using fake information, then hired staff and were convincing clients through cold calling to invest with the binary options brand Binary.Com. Ms. Jaros and Mr. Capper claimed that experienced traders will then manage ther victims’ accounts after selling them a membership to a trading system priced between $2,995 and $24,000.
The corporate watchdog explained that operating unlicensed financial services business carries penalties of $36,000, two years’ jail, or both. A similar fine or jail term of five years, or both, applies to lodging incorrect documentation.
For operating the boiler room through their companies ‘Astra Group Pty Ltd’ and ‘Old Cambridge Pty Ltd’, the duo received jail time, suspended for three years after they posted bonds of 2000 and 5000 AUD respectively.
The term ‘boiler room’ refers to a type of fraud that involves contacting customers unsolicited, often by telephone, offering to sell them exotic financial products. Although the boiler rooms often claim to be authorized service providers with professional websites and forms to fill out, they are in reality swindlers that offer fictitious or worthless investments.
In a bid to help investors identify who to trust with their financial queries, the ASIC said that its website lists registered investment companies and financial advisers, as well as a list of banned and disqualified directors and advisers.