In June 2017, the Security Division of the Department of Financial Institutions of the State of Washington issued the final order against Oracle Stone Ltd and its broker style PorterFinance (download here). It found that PorterFinance was illegally offering binary options in the U.S. and made untrue statements of material facts to potential customers. Oracle Stone Ltd, the operator of PorterFinance, was ordered to cease operations immediately and fined. Previously, financial market regulators in Australia had issued warnings to investors. Porter Finance is another illegal binary options broker from the PandaTS Broker Hub. PorterFinance is also part of the GreyMountain Management (GMM) of Jonathan Cartu, David Cartu, and Uri Katz.
Ultimate Beneficial Owner
The ultimate beneficial owner (UBO) behind the PorterFinance binary options scam (www.porterfinance.com) was the Mexican citizen Eduardo Rodriguez Cedillo.
Cedillo founded the offshore entity Sky Runway Ltd in the Commonwealth of Dominica in July 2015 (registration number: 18704) which, in turn, was the sole shareholder of Oracle Stone Ltd, registered in the UK (registration number: 9684789). Eduardo Rodriguez Cedillo is the registered director in both companies.
Oracle Stone Ltd has subsequently been the legal entity which operated the PorterFinance Scheme website, offering binary options in Australia, USA, Canada, UK, and Europe. The company was dissolved in Jan 2018 via a compulsory strike-off, Cedillo and PorterFinance vanished.
Payment Service Provider
Oracle Stone Ltd registered as a merchant with PayObin in July 2015 in order to process payment transactions via PayObin. A certain Amir Viva is given in the Merchant application as a contact for PorterFinance. FinTelegram learned that this Amir Viva may also be one of the beneficial owners and/or perpetrators.
PayObin, in turn, cooperates with other payment transaction providers such as
FinTelegram has documents available which prove that PayObin was active as a payment service provider and this also in the U.S. We refer in this regard to the legal proceedings in the U.S. Payobin Ltd vs. Umbrella Onlinetech LLC. A more detailed report will be published shortly on this subject. Officially, PayObin is owned by Oded Jeremitsky as is SeeddPay Ltd on the Marshall Islands.
The PayObin and PayOtech Ltd owners Tamir Zoltovski and Eyal Nachum also run the registered PSP Moneta International UAB which is as well closely integrated into the PandaTS Broker Hub. Moreover, FinTelegram learned that Moneta International UAB and/or its owners Nachum and Zoltovski are also doing business with SSG Media, a company in the former GreyMountain Management (GMM) network of scam brokers.
Member of PandaTS and GreyMountain Management
PorterFinance was operated as a PandaTS white-label solution. In addition, PorterFinance was operated as part of the Irish GreyMountain Management (GMM) around Jonathan Cartu, David Cartu, and Uri Katz. Beside PorterFinance, there was a number of other illegal binary options and forex scams who were members of both groups.
GMM was one of the big “business development hubs” in the binary options era and developed many illegal broker scams in North America, Europe, and Asia. Interested readers should have a look in the respective ForexPeaceArmy discussion group “GreyMountain Management’s Nest of Binary Scam Brokers“.
Scam it was!
Given the investor warnings of financial market supervisory authorities such as Australien ASIC or CySEC and the U.S. cease and desist order it is beyond doubt that PorterFinance operated without the required licenses and hence illegal. Furthermore, the scheme acted fraudulently as it did not pay back the customer deposits and misappropriated client funds. Consequently, ForexPeaceArmy (FPA) concludes that PorterFinance is a scam.
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