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Zoey_JD, Criminal attorney
Category: Fraud Examiner
Satisfied Customers: 23572
Experience:  Active member of the NYS bar since 1989
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My son invested $100k with a "company" called No 1 Options.

Customer Question

My son invested $100k with a "company" called No 1 Options. They keep telling him to invest more money and make more trades to get his money out. Is this a scam?
Submitted: 11 months ago.
Category: Fraud Examiner
Expert:  Zoey_JD replied 11 months ago.
Hello, If it's a binary options company, then yes, it probably is. Most of them are not regulated by any financial authority, and they feel free to do anything they please, since in most cases they are located somewhere offshore, if you can find them at all, and are out of the reach of your law enforcement authorities and consumer protection agencies. Very few binary option companies are lawfully regulated. No 1 Options is NOT regulated and that means your recourse may be very limited. If you have a website for them, please provide it so that I can look into the company a bit more.
Customer: replied 11 months ago.
Thanks. It's www.no1options. They are based in Anguilla and belong to sonething called Shof Marketinh. No licence with Cysec
Expert:  Zoey_JD replied 11 months ago.
I'm sorry for the delay. I had to cook and eat my dinner. You may already have some of this information. The company was launched in May of 2014. The site IP address traces to England, but the site registrar, assuming the information is correct, is in Anguilla. Here's his name and contact information: Registrant Name: ***** *****Registrant Organization: S.O. MarketingRegistrant Street: 201 Rogers Office BuildingRegistrant Street: Edwin Wallace Rey DriveRegistrant City: ***** *****Registrant State/Province: ALRegistrant Postal Code: AI-2640Registrant Country: AIRegistrant Phone: +44.2031502784 The phone number is ***** landline that traces to London. The account holder's name is ***** ***** for foreign phone numbers on a reverse search, as their privacy laws are different than ours. There is no company called S.O. Marketing in London and no company anywhere in the UK called NO1options, so the London number may be a call forwarding service of some kind. In fact, No1Options appears to have been blacklisted by the Financial Conduct Authority, which is the UK's regulatory agency for financial firms, and the UK warns investors not to trade with them. I've looked at the terms and conditions for the company and if your son complies with them, they should honor their own agreement. The terms specifically say that they do not charge a fee for withdrawal and they will credit it back to your card quickly, so long as the transfer is under $1,000. Over that amount they want to transfer it by wire and they require that you give up a substantial amount of personal identifying information to them so that they know it's really the account holder. But if your son does all that and they don't give him the money, he would have to sue them in Anguilla, assuming they are really there. And if they are not there, then he's set himself up for major identity theft. I recommend that he contact ASIC and see what guidance they may be able to give him. THey are probably already familiar with this firm. But his ultimate recourse would be to sue them where they are, which would be Anguilla, because if he sued them in Australia, he might still have to bring the matter to the courts of Anguilla to get the Australian judgment enforced, and that is not always easy. As they claim to have some ties to London you can also report this to, which is the UK's national anti-fraud law enforcement unit.
Customer: replied 11 months ago.
Thank you so much. What Ididn't mention is that he is 20 and was trying tp help me pay back a little debt my ex husband left me with(which I had under control). What my so. Stupidly did was use my credit cards to invest in these 'options'. I never authorised any of it. Should I contest the transactions with the banks? I don't eant to get him into trouble. He meant well, he eas just naive and they told him he had to invest more to get his original investment out
Expert:  Zoey_JD replied 11 months ago.
I'm in the US, but I'm assuming that your credit card companies are going to work the same way ours will when you report an unauthorized use of your card. They will want to go after your son. So yes, you can get him in trouble.
Customer: replied 11 months ago.
Thanks Zoey - that is my fear. What about if I said I authorised it but then found out it was a scam?
Expert:  Zoey_JD replied 11 months ago.
It would keep him out of trouble if you told them you authorized his use but that you both didn't realize the company was a scam.