Frequently Asked Questions
- What is this case about?
- Why did I receive a Notice?
- Who is a Preliminary Claimant?
- Who is eligible to participate in the EZTD Fair Fund?
- Who is excluded from participating in the EZTD Fair Fund?
- What is the amount of the EZTD Fair Fund?
- What do I need to do to participate in the EZTD Fair Fund?
- What options do I have if I disagree with my Recognized Loss amount?
- Who is the Fund Administrator?
- How do I get more information or contact the Fund Administrator?
- What is this case about?
On November 10, 2016, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and Cease-and-Desist Order (the "Order") against EZTD Inc. (the "Respondent"). You can see a copy of the Order on the Case Documents tab of this website. In the Order, the Commission found that between June 1, 2011 and August 31, 2014, the Respondent made offers and sales of binary options to U.S. customers through two online trading platforms, eztrader.com and globaloption.com. These binary options constituted securities under the federal securities laws. The Respondent, however, failed to register any of its offers and sales of binary options with the Commission and it failed to register with the Commission as a broker-dealer. The Respondents also made statements on the trading platforms that misstated or omitted to state the true financial risk associated with investing in the firm’s binary options. The Commission ordered the Respondent to pay $1,515,858 in disgorgement, $57,691 in prejudgment interest, and a $200,000 civil money penalty, for a total of $1,773,549, to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “EZTD Fair Fund”). The Respondent has paid a total of $738,980. The Fair Fund has been deposited in a Commission-designated account at the United States Department of the Treasury, and any accrued interest will be added to the Fair Fund.
Top - Why did I receive a Notice?
You received a Notice because you were identified as a preliminary claimant who may have been harmed as a result of securities law violations by the Respondent during the Relevant Period from June 1, 2011 through August 31, 2014.
Top - Who is a Preliminary Claimant?
A Preliminary Claimant is a Person, or their lawful successors, identified by the Fund Administrator based on its review and analysis of documents obtained by the Commission staff during its investigation, including account-level transactional records, who may have suffered a loss as a result of transactions in binary options purchased through EZTD's two online trading platforms, eztrader.com and globaloption.com, during the Relevant Period.
Top - Who is eligible to participate in the EZTD Fair Fund?
In order to be considered for eligibility to receive a Distribution Payment under the approved distribution plan, you must access the Fair Fund’s website and complete the online Preliminary Claimant Certification Form with the claim number and pin supplied in your notice. All submissions must be received by October 3, 2023 in order to participate. If you are unable to access the online Preliminary Claimant Certification Form or would prefer to submit a paper copy of the certification form, please immediately contact the Fund Administrator by e-mail to [email protected]. Please note that paper submissions must be received by the Fund Administrator by October 3, 2023, in order to be considered.
Top - Who is excluded from participating in the EZTD Fair Fund?
Excluded from the EZTD Fair Fund are:
(a) the Respondent, or Respondent's advisers, agents, nominees, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities;
(b) the Fund Administrator, its employees, and those Persons assisting the Fund Administrator in its role as the Fund Administrator; and
(c) any purchaser or assignee of another Person's right to obtain a recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance or devise.
Top - What is the amount of the EZTD Fair Fund?
The EZTD Fair Fund currently includes the $738,980.00 paid by the Respondent, and any additional funds collected from the Respondent, pursuant to the Order, will be added to the Fair Fund.
Top - What do I need to do to participate in the EZTD Fair Fund?
In order to be considered for eligibility to receive a Distribution Payment under the approved distribution plan, you must access the Fair Fund’s website and complete the online Preliminary Claimant Certification Form with the claim number and pin supplied in your notice. All submissions must be received by October 3, 2023 in order to participate. If you are unable to access the online Preliminary Claimant Certification Form or would prefer to submit a paper copy of the certification form, please immediately contact the Fund Administrator by e-mail to [email protected]. Please note that paper submissions must be received by the Fund Administrator by October 3, 2023, in order to be considered. A Preliminary Claimant, as that term is defined in the approved Distribution Plan, whose address the Fund Administrator has not been able to verify and/or who does not timely respond to the Fund Administrator’s attempts to obtain information, including any information sought in the Plan Notice and Certification Form, shall be deemed as unresponsive. Unresponsive Preliminary Claimants will not be eligible for a distribution under the approved distribution plan.
Top - What options do I have if I disagree with my Recognized Loss amount?
If you wish to dispute the calculation of your Recognized Loss amount, you must submit a written communication detailing any dispute and provide supporting documentation to the Fund Administrator with your Certification Form. Your dispute must be received on or before October 3, 2023. The Fund Administrator will investigate the dispute, and such investigation will include a review of the written dispute as well as any supporting documentation.
Top - Who is the Fund Administrator?
The Commission appointed KCC, LLC, as the fund administrator for the EZTD Fair Fund on March 23, 2020. The Fund Administrator will be responsible for administering the Fair Fund in accordance with the approved distribution plan.
Top - How do I get more information or contact the Fund Administrator?
Additional information regarding the EZTD Fair Fund may be found on this website. You may also call the toll-free number 1- 855-660-1130 to ask questions, or you may e-mail the Fund Administrator at [email protected]. If you would like to get copies of the relevant documents, including the Plan of Distribution, please visit the Case Documents tab on this website.
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