An affiliate marketer named Peter Szatmari must pay more than $13.8 million for fraudulently soliciting investors to open and fund binary options accounts on websites operated by unregistered brokers.
According to the Commodity Futures Trading Commission (CFTC), the U.S. District Court for the District of Hawaii entered an order of default judgment against Szatmari on September 14.
The default judgment follows an order by Judge Derrick K. Watson on August 13. Judge Watson adopted the findings and recommendations of Magistrate Judge Kenneth J. Mansfield on July 28, 2020.
The court order requires Szatmari to pay approximately $6.25 million in restitution to defrauded customers, $1.9 million in disgorgement, and a civil monetary penalty of $5.7 million.
Additionally, the order permanently prohibits Szatmari from violating the Commodity Exchange Act, registering with the CFTC, and trading in any CFTC-regulated markets.
The order resolves the CFTC’s complaint against Szatmari and his business partner, David Sechovich.
CFTC accused Szatmari and his business partner of fraud
In October last year, the CFTC filed charges against Szatmari and Sechovich for allegedly creating and disseminating fraudulent solicitations of binary options trading.
