The City of London, as a leading hub for financial services, is attractive to boiler rooms and other fraudulent operations, who purport to be operating proper services from such prime locations in order to lure the unsuspected and trick them into parting with their money, which they then take and run!
As part of operation Broadway, which was an 18 month long concerted effort by the City of London Police, the Metropolitan Police and the City of London Trading Standards, investment fraudsters were successfully targeted before having had the opportunity to consolidate their criminal operations.
Another victory over fraudsters came a few days ago when detectives from the City of London Police managed to arrest the suspected mastermind behind Base2Trade, a binary options broker that was accused of defrauding its clients of about £2 million.
The 38 year-old man, who was arrested at London’s City Airport, comes from Chingford in Essex and that the time of this arrest he was returning from the island of Cyprus where he had managed to flee, only days before a warrant for his arrest was issued last June.
Currently, in liquidation, Base2Treade was found to have sold fraudulent binary options trading from three offices in the City of London that were located on Bishopsgate and New Broad Street and in Tower 42. The fraudulent activities of Base2Trade appear to have led to an amount of two million pounds being lost by over 150 people who have complained to authorities against the scheme.
Following these complaints, the City of London Police had been investigating the case since January 2015 and this investigation was successfully completed with the arrest of chief suspect in the case, who was arrested on suspicion of conspiracy to defraud, fraud by false representation and money laundering.
Commenting on this binary options scam case, Police Staff Investigator Joseph Ford, from the City of London Police, said:
“We have been gathering evidence in this case for over a year and today we have made what we believe is a key arrest. This has the hallmarks of a classic boiler room fraud, set-up in the City to give it prestige and credibility with potential investors while selling share options that we believe were totally worthless. The City of London Police is committed to working tirelessly to shutting down these operations as quickly as possible before they can wrap their criminal tentacles around too many people.”