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by Mike Caswell

Ryan Masten, a Texas resident charged by the Commodity Futures Trading Commission alongside three Ontario men for a $165-million binary options scheme that defrauded investors with rigged trades, has agreed to settle the case out of court. (All figures are in U.S. dollars.) He has accepted a $100,000 fine and has agreed to co-operate fully with the CFTC. Mr. Masten is also permanently prohibited from some commodity trading roles without first obtaining a registration.

Mr. Masten's settlement comes as part of a case in which the CFTC claimed that he and his Canadian associates were behind a fraudulent options trading platform. Investors were promised "quick" returns of up to 85 per cent, but there were few payouts, the CFTC said. Mr. Masten's part in the scheme included opening accounts and concealing the proceeds from the operation, the CFTC said.

The terms of Mr. Masten's settlement are contained in a proposed judgment filed on Monday, Aug. 28, in federal court in Texas. The judgment gives Mr. Masten 30 days to pay the $100,000 fine. He is also banned from associating with a commodity trading adviser and from advising customers on commodity trades for a profit without being registered. (Obtaining a registration would presumably be complicated by the CFTC case, but the judgment is silent on what he must to do if he wishes to register.) In accepting the penalties, Mr. Masten has not admitted to any wrongdoing. The penalties still require approval from the judge.

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