Receivership for
Jason B. Scharf d/b/a Citrades.com and AutoTradingBinary.com,
CIT Investments, LLC, Brevspand EOOD, CIT Investments, Ltd.,
A&J Media Partners, Inc., Michael Shah, and Zilmil, Inc.

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RECEIVER'S INITIAL REPORT 9/25/17   [click here]

Exhibit A



 

United States Commodity Futures Trading Commission v. Jason B. Scharf d/b/a/ Citrades.com and AutoTradingBinary.com, CIT Investments, LLC, Brevspand EOOD,

CIT Investments, Ltd., A&J Media Partners, Inc., Michael Shah, and Zilmil, Inc.

 

CASE NO. 3:17-cv-774-J-32-MCR

On July 10, 2017, the Commodity Futures Trading Commission (“CFTC”) filed a Complaint for Injunctive Relief and Demand for Jury Trial (the “Complaint”) against Jason B. Scharf, who was doing business as Citrades.com and AutoTradingBinary.com, Michael Shah, Zilmil, Inc., and the other entities and persons listed above (collectively, “Defendants”), commencing the enforcement action of CFTC v. Scharf, et al. (the “CFTC Action”) in the U.S. District Court for the Middle District of Florida (the “District Court”). 

In the Complaint, the CFTC alleges, among other things, that Jason Scharf, CIT Investments, LLC, Brevspand EOOC, CIT Investments, Ltd., and A&J Media Partners, Inc. (the “Citrades Defendants”), engaged in illegal, off-exchange retail transaction swaps, off-exchange commodity option transactions, and fraudulently solicited customers to enter into off-exchange investments in “binary options,” in violation of several federal statutes.   

Further, the CFTC alleges that Michael Shah and Zilmil, Inc. (the “Zilmil Defendants”) fraudulently solicited customers to sign up for or purchase illegal binary options autotrading systems and to direct money to the Citrades Defendants.  And, the CFTC alleges that the Defendants’ websites made false and misleading statements about their binary options products and their profitability, and the Defendants refused to return customer account balances. 

As a result, on July 12, 2017, the District Court entered an In Camera Order Granting Plaintiff Commodity Futures Trading Commission’s Ex Parte Motion for Statutory Restraining Order, Appointment of Receiver, an Accounting, Expedited Discovery, Order to Show Cause Regarding Preliminary Injunction, and Other Equitable Relief (the “Restraining / Freeze / Appointment Order”) in the above-referenced CFTC Action.  Pursuant to the Restraining / Freeze / Appointment Order, the Defendants were enjoined from continuing to violate the federal statutes they were violating, among other thing, the Defendants’ assets were frozen and records ordered to be preserved, and Kenneth Dante Murena was appointed Receiver of all Defendants in the CFTC Action. 

In accordance with the Restraining / Freeze / Appointment Order, the Court-appointed Receiver took immediate steps and will make every possible effort to marshal and preserve the Defendants’ assets for the benefit of the customers they are alleged to have defrauded, and will otherwise fulfill his duties under that Order. 

Subsequent to the Court’s entry of the Restraining / Freeze / Appointment Order, the District Court entered the Consent Order for Preliminary Injunction and the Order for Preliminary Injunction Against Defendants CIT Investments LLC, Brevspand EEOD, and CIT Investments Ltd. (together the “Preliminary Injunctions”).  Pursuant to the Preliminary Injunctions, Kenneth Dante Murena was appointed Permanent Receiver of all Defendants in the CFTC Action.

The Receiver encourages retail customers who conducted transactions with the Defendants to carefully review the Complaint and the District Court’s Orders (links to which are set forth above) so they understand the nature of the claims alleged against the Defendants in the CFTC Action and the extent and scope of the Receiver’s duties and authority under those Orders. The Receiver will provide (on this website – www.BinaryOptionsReceivership.com) additional information regarding the investigation into the Defendants’ business operations and assets and the Defendants’ dealings with customers. 

For further information regarding the CFTC Action, and how it may affect retail customers, please visit the CFTC’s website (www.cftc.gov/PressRoom/PressReleases/pr7590-17). You may also contact a representative of the Receiver at 305-371-3960. 

Please understand that neither the Receiver nor any of his attorneys or other representatives may provide you with legal, tax and/or accounting advice in connection with this or any other matter.  Should you require such advice, the Receiver asks that you contact your own attorney, accountant or other professional. 

The Receiver encourages you to periodically visit the CFTC website and this website as they will be updated with additional information throughout the course of the CFTC Action.  Thank you.

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