ASIC pursues options peddlers
TheAustralian Securities and Investments Commission(ASIC) has converted its pursuit of five options trading seminar operators into an enforceable undertaking with the Federal Court restricting the accused parties from making misleading and deceptive claims or from acting without the authority of an Australian Financial Services Licence (AFSL).
ASIC has alleged seminar promoter and provider Break Free Events has made a number of false and misleading statements to teach highly lucrative option trading secrets.
ASIC further alleges that the seminar presenters made representations to attendees of the course that certain trading strategies promoted in the course would enable ordinary people to achieve high and consistent returns.
These claims include statements that returns of 150 per cent can normally be made within five days trading options; it is possible to make between $2500 and $7000 trading options and working less than 10 hours per week; and by renting shares you can generate a predictable and consistent return every month of $2500 or more.
The five parties include Giann & Giann Pty Ltd, trading as Break Free Events, and its director, Jon Giannopoulos, and CTC Professional Services Pty Ltd and its director, Carlo Castellano.
Following the hearing, Justice Finkelstein of the Federal Court has made further orders to enable the proceedings to be brought to trial.
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