Consumer complaint received 2023-06-07
Company: CITIBANK, N.A.
State: CA
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
I am the victim of a financial scam that resulted in my losing most of my life savings ( 401K, legitimate investments ( stocks, mutual funds ), savings and checking accounts ). I employed the services of a company that helps victims of financial scams. Below is the wording of the CFPB complaint, as per their legal counsel. 
-- - Our client was solicited by a merchant, XXXX XXXX XXXX, operating under the web address XXXX to wire funds to a false and fictitious trading account. The merchant is part of a global network of cybercrime known as the binary option and falsified trading scam. Our Client has accessed the Internet-based platform of the Merchant available under XXXX. To the best of our knowledge, the Merchant did not provide a contract ; however, the terms and conditions contained on the site are intended to govern the relationship and responsibilities of the parties. Therefore, all information on the web-site is relevant for determination of the services and the rights and obligations of the parties. The Merchant claimed to be a financial services provider dealing with regulated financial products, such as CFDs, indices, binary options, commodities etc. In addition, the officers and employees of the Merchant are also presented as experienced brokers ( a designation that requires licensing ). Evidently, it is advertising and promoting itself as a provider of financial services and is trying to influence third parties decisions to undertake financial commitments and to invest in the offered financial products based upon the information provided by the Merchant on its website. All of those activities require the Merchant to possess the required licensing. The website of the Merchant contains clear statements that its team consists of professional brokers. Persons claiming to be such licensed brokers apparently contacted third parties and communicated with them the possibility of making an investment, which is strictly prohibited by the law if there is a lack of the respective license. Only a licensed broker can contact persons with the intention to assist them regarding where and how to invest their money. In order to be able to act as an investment intermediary, or broker, or similar i.e. in order to have the capacity to offer financial advice and to provide access to regulated financial products to third parties one has to be registered with the relevant supervisory authorities. It is the common rule that financial products such as CFDs, indices, binary options, stocks and commodities exists, are regulated, not only in the XXXX, in which the Merchant claims to be located, but also in most of the rest of the world, including in the United States ( where our client resides and where your money services business is registered ). Our research conducted from sources available in public registries has shown, however, that the Merchant is NOT licensed to offer regulated financial products nor to provide financial advice to third parties such as our client. XXXX XXXX XXXX XXXX XXXX Furthermore, our investigation in the case has shown also that there are warnings from Government Regulatory Authorities for operating and providing financial services without having the proper required licensing. The Merchant claimed to have the ability to trade regulated financial products. In reality, the merchant provides a fictitious and malicious software which does not execute any trades and is not connected to any recognized exchanges. It is manipulated by the merchant to exhibit its own desired figures. The merchant has left a trail of victims who have fallen for a sophisticated and well-crafted scam and that have lost their entire life savings. Evidence to support this can easily be found on the web by conducting basic research about the Merchant. We can provide further evidence if needed. 

Bank transfer details below : Date : XX/XX/2020 Recipient : XXXX XXXX XXXX, LIMITED Amount : {$200000.00}

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation