UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

ADMINISTRATIVE PROCEEDING 

File No. 3-17673

In the Matter of

EZTD Inc.

Respondent.

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PLAN OF DISTRIBUTION

I. OVERVIEW

1. The Division of Enforcement has prepared this Plan of Distribution (the “Plan”) 

to the United States Securities and Exchange Commission (the “Commission”) pursuant to Rule 

1101 of the Commission’s Rules on Fair Fund and Disgorgement Plans (the “Commission’s 

Rules”), 17 C.F.R. § 201.1101. This Plan provides for the distribution of a Fair Fund (the “Fair 

Fund”) comprised of disgorgement paid by EZTD Inc. (“EZTD” or the “Respondent”), in 

addition to any additional funds collected from the Respondent, pursuant to the Order1in the 

above-captioned matter. 

2. As described more specifically below, the Plan seeks to compensate investors 

who were harmed by the Respondent’s conduct described in the Order, in connection with

EZTD’s offers and sales of binary options to U.S. customers, between June 2011 and August 

2014. Based on information obtained by the Commission staff during its investigation and the 

review and analysis of applicable records, the Commission staff has reasonably concluded that it 

has all records necessary to calculate each investor’s harm. As a result, the Fair Fund is not 

being distributed according to a claims-made process, so procedures for making and approving 

claims in accordance with Rule 1101(b)(4) of the Commission’s Rules, 17 C.F.R. § 

201.1101(b)(4) are not applicable.

3. As calculated using the methodology detailed in the Plan of Allocation (attached 

as Exhibit A), investors will be compensated for their losses on binary options purchased through 

EZTD’s two online trading platforms, eztrader.com and globaloption.com (the “Securities”),

from June 1, 2011 through August 31, 2014 (the “Relevant Period”). 

1

 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 a Cease-and-Desist Order, Securities Act Rel. No. 10251 (Nov. 10, 2016).
2

4. In the view of the Commission staff, this methodology constitutes a fair and 

reasonable allocation of the Fair Fund. 

5. The Commission has custody of the Fair Fund and shall retain control of the 

assets of the Fair Fund. The Plan has been approved by the Commission, and the Commission 

retains jurisdiction over its implementation.

II. BACKGROUND

6. On November 10, 2016, the Commission issued the Order instituting and 

simultaneously settling administrative and cease-and-desist proceedings against the Respondent. 

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 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 the 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.

7. To date, the Respondent has paid a total of $738,980, and any additional funds 

collected from the Respondent, pursuant to the Order will be added to the Fair Fund. 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. 

III. DEFINITIONS

As used in this Plan, the following definitions will apply:

8. “Administrative Costs” shall mean any administrative costs and expenses, 

including without limitation tax obligations, the fees and expenses of the Tax Administrator and 

the Fund Administrator, bond premium expenses, and investment and banking costs. 

9. “Certification Form” means the form that will be emailed or mailed to each 

Preliminary Claimant in order to confirm his, her, or its calculated Recognized Loss, the name 

and mailing address of the payee to which a Distribution Payment should be issued, if applicable.

The Certification Form may be accompanied by tax forms, as required, relating to the tax 

treatment of any distribution.

10. “Distribution Payment” means a payment from the Fair Fund to a Payee in 

accordance with the terms of this Plan.

11. “Eligible Claimant” means a Preliminary Claimant, who is determined to have 

suffered a Recognized Loss, pursuant to the Plan of Allocation, and who is not an Excluded 
3

Party or an Unresponsive Preliminary Claimant.

12. “Excluded Party” shall mean: (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.

13. “Fair Fund” means the fund created by the Commission pursuant to Section 

308(a) of the Sarbanes-Oxley Act of 2002, for the benefit of investors harmed by Respondent’s 

violations described in the Order. 

14. “Final Determination Notice” means the written notice sent by the Fund 

Administrator to (a) any Preliminary Claimant who timely submitted a written dispute of his, her, 

or its calculated Recognized Loss notifying the Preliminary Claimant of its resolution of the 

dispute; and (b) those Preliminary Claimants who have not responded to the Plan Notice by 

returning the Certification Form and/or any other requested documentation, as described in 

paragraph 42, notifying the Preliminary Claimant that he, she, or it has been deemed an 

Unresponsive Preliminary Claimant. The Fund Administrator will not send a Final 

Determination Notice to a Preliminary Claimant, if his, her, or its Plan Notice was returned as 

“undeliverable.” The Final Determination Notice will constitute the Fund Administrator’s final 

ruling regarding the status of the claim.

15. “Net Available Fair Fund” means the Fair Fund, plus any interest or earnings, 

less Administrative Costs. 

16. “Payee” means an Eligible Claimant whose distribution amount is equal to or 

greater than $10.00, as calculated in accordance with the Plan of Allocation, who will receive a 

Distribution Payment.

17. “Person” means natural individuals as well as legal entities such as corporations, 

partnerships, or limited liability companies.

18. “Plan Notice” means a written notice from the Fund Administrator to each 

Preliminary Claimant regarding the Commission’s approval of the Plan, including, as 

appropriate: a statement characterizing the distribution; a link to the approved Plan posted on the 

Commission’s website and instructions for requesting a copy of the Plan; a Certification Form, 

along with specification of any additional information needed from the Preliminary Claimant to 

prevent him, her, or it from being deemed an Unresponsive Preliminary Claimant; his, her, or its 

preliminary Recognized Loss; a description of the tax information reporting and other related tax 

matters; the procedure for the distribution as set forth in the Plan; and the name and contact 

information for the Fund Administrator as a resource for additional information or to contact 

with questions regarding the distribution. 
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19. “Plan of Allocation” means the methodology used by the Fund Administrator to 

calculate if a Preliminary Claimant has suffered a Recognized Loss. The Plan of Allocation is 

attached as Exhibit A. 

20. “Preliminary Claimant” means 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 the Securities during the Relevant Period.

21. “Recognized Loss” means the amount of loss calculated in accordance with the 

Plan of Allocation.

22. “Relevant Period” is June 1, 2011 through August 31, 2014.

23. “Securities” means binary options purchased through EZTD’s two online trading 

platforms, eztrader.com and globaloption.com.

24. “Unresponsive Preliminary Claimant” means a Preliminary Claimant 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. Unresponsive Preliminary Claimants will not be eligible 

for a distribution under the Plan.

IV. TAX COMPLIANCE

25. On December 1, 2017, the Commission appointed Miller Kaplan Arase LLP as 

the tax administrator (the “Tax Administrator”) for the Fair Fund to handle the tax obligations of 

the Fair Fund.

2

 The Tax Administrator will be compensated for reasonable fees and expenses 

from the Fair Fund in accordance with its Revised 2017-2018 Engagement Letter Agreement 

with the Commission.3

26. The Fair Fund constitutes a Qualified Settlement Fund (“QSF”) under Section 

468B(g) of the Internal Revenue Code of 1986, as amended, 26 U.S.C. § 468B(g), and related 

regulations, 26 C.F.R. §§ 1.468B-1 through 1.468B-5. The Tax Administrator is the 

administrator of such QSF for purposes of Treas. Reg. § 1.468B-2(k)(3)(I) and shall satisfy the 

tax-related administrative requirements imposed by Treas. Reg. § 1.468B-2, including, but not 

limited to:

(a) Obtaining a taxpayer identification number; 

(b) Requesting funds necessary for the timely payment of all applicable taxes, 

the payment of taxes for which the Tax Administrator has received funds, 

and the filing of applicable returns; and 

2

 See Order Appointing Tax Administrator, Exchange Act Rel. No. 82195 (Dec. 1, 2017).

3

 See Omnibus Order Directing the Appointment of Tax Administrator in Administrative Proceedings that Establish 

Distribution Funds, Exchange Act Rel. No. 81057 (June 30, 2017).
5

(c) Fulfilling any information reporting or withholding requirements imposed 

on distributions from the Fair Fund.

27. All tax obligations will be paid from the Fair Fund, subject to the review and 

approval of Commission staff.

V. FUND ADMINISTRATOR

28. On March 23, 2020, the Commission appointed KCC, LLC, as the fund 

administrator for the Fair Fund (the “Fund Administrator”), and the Fund Administrator has 

obtained a bond in the amount of $738,980.00, as ordered.4 Pursuant to Rule 1105(a) of the 

Commission’s Rules, 17 C.F.R. § 201.1105(a), the Fund Administrator may be removed at any 

time by order of the Commission or hearing officer.

29. The Fund Administrator will be responsible for administering the Fair Fund in 

accordance with the Plan. This will include, among other things, taking reasonable steps to 

obtain accurate mailing information for Preliminary Claimants; establishing a website and 

staffing a call center to address inquiries regarding the Plan; disseminating the Plan Notice; 

preparing accountings; cooperating with the Tax Administrator appointed by the Commission to 

satisfy any tax liabilities and to ensure compliance with income tax reporting requirements, 

including but not limited to Foreign Account Tax Compliance Act (FATCA); disbursing the Fair 

Fund in accordance with this Plan, as ordered by the Commission; and researching and 

reconciling errors and reissuing payments, when possible. 

30. To carry out the purposes of this Plan, the Fund Administrator is authorized to 

make and implement immaterial changes to the Plan upon agreement of the Commission staff. If 

a change is deemed to be material by the Commission staff, Commission approval is required 

prior to implementation by amending the Plan.

31. The Fund Administrator may extend any procedural deadline contained in the 

Plan for good cause shown, if agreed upon by the Commission staff.

32. When administering this Plan, the Fund Administrator, and/or each of its 

designees, agents and assigns, may rely on: all applicable law; orders issued by the Commission, 

including orders issued by delegated authority; orders issued by an administrative law judge, if 

any, appointed in this proceeding; and any records, including records containing investor 

information, provided by Commission staff.

33. The Fund Administrator is authorized to enter into agreements with third parties 

as may be appropriate or necessary in the administration of the Fair Fund, provided such third

parties are not excluded pursuant to other provisions of this Plan. In connection with such 

agreements, the third parties shall be deemed to be agents of the Fund Administrator under this 

Plan. 

4

 See Order Appointing Fund Administrator and Setting Bond Amount, Exchange Act Rel. No. 88454 (Mar. 23, 

2020).
6

34. The Fund Administrator will be entitled to payment from the Fair Fund of 

reasonable fees and expenses, including the bond premium, incurred in the performance of its 

duties (including any such fees and expenses incurred by agents, consultants or third parties 

retained by the Fund Administrator in furtherance of its duties).

VI. PLAN PROCEDURES

Specification of Preliminary Claimants

35. Using information obtained during its investigation, the Commission has 

identified the Preliminary Claimants. Preliminary Claimants are limited to only those Persons 

who may have suffered a loss as a result of transactions in the Securities during the Relevant 

Period. 

Procedures for Locating and Notifying Preliminary Claimants

36. Within thirty (30) days of Commission approval of the Plan, the Fund 

Administrator will: 

(a) Establish and maintain a website, www.EZTDFairFund.com, devoted 

solely to the Fair Fund. The Fair Fund’s website will make available a 

copy of the approved Plan, include a copy of the Plan Notice, the 

Certification Form, and related materials in downloadable form, and such 

other information that the Fund Administrator believes will be beneficial 

to Preliminary Claimants; 

(b) Establish and maintain a toll-free telephone number, (855) 660-1130, for 

Preliminary Claimants to call and speak to a live representative of the 

Fund Administrator during its regular business hours or, outside of such 

hours, to hear pre-recorded information about the Fair Fund; 

(c) Establish and maintain a traditional mailing address (EZTD Fair Fund, c/o 

KCC Class Action Services, P.O. Box 6159, Novato, CA 94948-6159) and 

an email address, info@EZTDFairFund.com, which will be listed on all 

correspondence from the Fund Administrator to Preliminary Claimants as 

well as on the Fair Fund’s website;

(d) Establish and maintain a case specific database of all Preliminary 

Claimants based upon information provided to and obtained by the Fund 

Administrator, including their last known physical and email addresses;

(e) Run a National Change of Address search to retrieve updated addresses 

for all records in the database, thereby ensuring the mailing information 

for Preliminary Claimants is up-to-date; and
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(f) Send a Plan Notice to each Preliminary Claimant’s last known email 

address (if known) and/or mailing address. 

37. The Commission staff retains the right to review and approve any material posted 

on the Fair Fund’s website, any communication with investors, and any scripts used in 

connection with communications with investors.

Undeliverable Mail

38. The Fund Administrator will attempt to locate any Preliminary Claimant whose 

email and/or mailing is returned as undeliverable by the U.S. Postal Service or otherwise, 

including an advanced address search using commercially available resources, if feasible, and 

will document all such efforts. If another address is obtained, the Fund Administrator will then 

resend it to the Preliminary Claimant’s new address within twenty-one (21) days of receipt of the 

returned mail. If the mailing is returned again, and the Fund Administrator, despite best 

practicable efforts, is unable to find a Preliminary Claimant’s correct address, the Fund 

Administrator, in its discretion, may deem such Preliminary Claimant an Unresponsive 

Preliminary Claimant. 

39. The Fund Administrator, with Commission staff approval, may engage a thirdparty search firm to conduct more rigorous searches for Persons whose mailings are returned as 

undeliverable.

40. Any Preliminary Claimant who relocates or otherwise changes contact 

information after receipt of the Plan Notice must promptly communicate any change in address 

or contact information to the Fund Administrator.

Procedures to Request Plan Notice

41. Any Person who does not receive a Plan Notice, as described in paragraph 36, but 

who is aware of this Plan (e.g., through other Preliminary Claimants or on www.sec.gov) and 

believes they should be included as a Preliminary Claimant should contact the Fund 

Administrator within forty-five (45) days from the approval of the Plan to establish that they 

should be considered a Preliminary Claimant. Such Person should include with that 

communication, documentation sufficient to support their claim that they should be considered a 

Preliminary Claimant, as well as contact information (physical address, telephone number, and 

email address, if available) for responsive communications. The Fund Administrator will send 

the Person a Plan Notice within fifteen (15) days of receiving the Person’s documentation, if the 

Fund Administrator determines that the Person should have received a Plan Notice.

Certification Requirement by Preliminary Claimants and Failure to Respond to Plan 

Notice

42. In order to maintain classification as a Preliminary Claimant, the Certification 

Form must be signed by the Preliminary Claimant under penalty of perjury under the laws of the 

United States and returned to the Fund Administrator by the deadline stated in the Plan Notice. 
8

The Certification Form must be executed by the Preliminary Claimant, unless the Fund 

Administrator accepts such Certification Form from a successor, heir, administrator, or other 

Person authorized to act on the Preliminary Claimant’s behalf. Those authorized to act on behalf 

of Preliminary Claimants will be eligible to participate in the distribution to the same extent the 

original investor would have been eligible under the terms of the Plan. 

43. The Fund Administrator will review all Certification Forms. Each Preliminary 

Claimant will have the burden of proof to establish their identity as a Preliminary Claimant, or 

his, her, or its successor. The Fund Administrator will have the right to request, and the 

Preliminary Claimant will have the burden of providing to the Fund Administrator, any 

additional information and/or documentation deemed relevant by the Fund Administrator. 

44. If a Preliminary Claimant fails to return the Certification Form within sixty (60) 

days from the initial emailing and/or mailing of the Plan Notice, the Fund Administrator will 

make no fewer than two (2) attempts to contact the Preliminary Claimant by mail, telephone or 

email, if known to the Fund Administrator. If a Preliminary Claimant fails to respond to the 

Fund Administrator’s contact attempts as described in this paragraph, the Fund Administrator, in 

its discretion, may remove such Preliminary Claimant from the distribution, deem such 

Preliminary Claimant an Unresponsive Preliminary Claimant, and such Preliminary Claimant’s 

allocated amount of the Net Available Fair Fund will remain in the Fair Fund.

Dispute Process

45. Disputes will be limited to Preliminary Claimant’s Recognized Loss calculation. 

Within sixty (60) days of the initial emailing and/or mailing Plan Notice, the Fund Administrator 

must receive the Certification Form along with a written communication detailing any dispute 

and any supporting documentation. The Fund Administrator will investigate the dispute, and 

such investigation will include a review of the written dispute as well as any supporting 

documentation. 

Final Determination Notices

46. Within one hundred twenty (120) days of the initial emailing and/or mailing of 

the Plan Notices, the Fund Administrator will send a Final Determination Notice to (a) any 

Preliminary Claimant who timely submitted a written dispute as described in paragraph 45

above, notifying the Preliminary Claimant of its resolution of the dispute; and (b) those 

Preliminary Claimants who have not responded to the Plan Notice, as described in paragraph 44

above, notifying the Preliminary Claimant that he, she, or it has been deemed an Unresponsive 

Preliminary Claimant, except for those whose Plan Notice were returned as undeliverable.

Distribution Methodology

47. The Fund Administrator will calculate each Preliminary Claimant’s Recognized 

Loss in accordance with the Plan of Allocation. All Preliminary Claimants who are determined 

to have a Recognized Loss, and who are not deemed an Excluded Party or an Unresponsive 

Preliminary Claimant will be deemed an Eligible Claimant. All Eligible Claimants whose 
9

distribution amount is equal to or greater than $10.00, as calculated in accordance with the Plan 

of Allocation, will be deemed a Payee and receive a Distribution Payment.

Establishment of a Reserve

48. Before determining the amount of funds available for distribution and calculating 

each Payee’s Distribution Payment, the Fund Administrator, in conjunction with the Tax 

Administrator, will establish a reserve to pay Administrative Costs and to accommodate any 

unexpected expenditures (the “Reserve”).

49. After all Distribution Payments are made and Administrative Costs paid, any 

remaining amounts in the Reserve will become part of the Residual described in paragraph 69

below. 

Preparation of the Payment File

50. Within one hundred fifty (150) days of Commission approval of the Plan, the 

Fund Administrator will compile and send to the Commission staff the Payee information, 

including the name, address, calculated Recognized Loss, and the amount of the Distribution 

Payment for all Payees (the “Payee List”). The Fund Administrator will also provide a 

Reasonable Assurances Letter to the Commission staff, representing that the Payee List: (a) was 

compiled in accordance with the approved Plan; (b) is accurate as to Payees’ names, addresses, 

Recognized Losses and amounts of their Distribution Payment; (c) includes the number of 

Payees compensated; (d) the percentage of Recognized Loss being compensated by the 

disbursement from the Fair Fund, and if applicable, the total percentage to include all prior 

disbursements; (e) the total amount being distributed; and (f) provides all information necessary 

to make a payment to each Payee.

The Escrow Account

51. Prior to the disbursement of funds from the Net Available Fair Fund, the Fund 

Administrator will establish an escrow account (the “Escrow Account”) with a United States 

commercial bank that is a well-capitalized financial institution as defined by the Federal Reserve 

Act, Subpart D, 12 C.F.R. 208.43 and that is not unacceptable to the Commission staff (the 

“Bank”), pursuant to an escrow agreement (the “Escrow Agreement”) to be provided by 

Commission staff.

52. The Fund Administrator, pursuant to the Escrow Agreement, shall also establish 

with the Bank a separate deposit account (e.g. controlled distribution account, managed 

distribution account, linked checking and investment account) (the “Distribution Account”), 

insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the guaranteed FDIC pass 

through limit. The Distribution Account shall be linked with the Escrow Account and shall be 

named, and records maintained, in accordance with the Escrow Agreement. 

53. During the term of the Escrow Agreement, the portions of the Fair Fund transferred 

to the Escrow Account (the “Escrow Property”) shall be invested and reinvested in short-term 
10

U.S. Treasury securities backed by the full faith and credit of the United States Government or 

an agency thereof. The investment shall be, of a type and term necessary to meet the cash 

liquidity requirements for payments to Payees and Administrative Costs, including investment or 

reinvestment in a bank account insured by the FDIC up to the guaranteed FDIC limit, or in 

money market mutual funds registered under the Investment Company Act of 1940 that invest 

100% of their assets in direct obligations of the United States Government. 

54. The Fund Administrator shall provide duplicate original bank and/or investment 

statements on any accounts established by the Fund Administrator to the Tax Administrator on a 

monthly basis and shall assist the Tax Administrator in obtaining mid-cycle statements, as 

necessary.

55. The Fund Administrator, in consultation with the Commission staff, shall work 

with the Bank on an ongoing basis to deposit or invest funds in the Escrow and Distribution 

Accounts so as to result in the maximum reasonable net return, taking into account the safety of 

such deposits or investments and tax implications; and to determine an allocation of funds 

between the Escrow and Distribution Account.

56. All interest, dividends, and/or income earned by the Escrow Property will accrue 

for the benefit of the Escrow Property. All Administrative Costs associated with the Escrow and 

Distribution Accounts will be the responsibility of the Fund Administrator, who may be 

reimbursed for said costs as provided in this Plan. No such Administrative Costs may be paid to 

the Bank, its agents, and/or its affiliates from the Escrow Property.

Distribution of the Fair Fund

57. Upon the Commission’s staff’s receipt, review, and acceptance of the Payee List 

and Reasonable Assurances Letter from the Fund Administrator, the Commission staff will seek 

an order from the Commission pursuant to Rule 1101(b)(6) of the Commission’s Rules, 17 

C.F.R. § 210.1101(b)(6), to disburse funds from the Net Available Fair Fund to the Bank in 

accordance with the Payee List for distribution by the Fund Administrator in accordance with the 

Plan. All disbursements will be made pursuant to a Commission Order. 

58. Upon issuance of an order to disburse, the Commission staff will direct the 

transfer of funds in accordance with the Payee List to the Bank. The Fund Administrator will 

then use its best efforts to commence mailing Distribution Payment checks and/or effect 

electronic payments within ten (10) business days of the release of the funds into the Escrow 

Account. All efforts will be coordinated to limit the time between the Escrow Account’s receipt 

of the funds and the issuance of Distribution Payments.

59. All checks will be issued by the Fund Administrator from the Distribution 

Account. All checks will bear a stale date of one hundred twenty (120) days from the date of 

issuance. Checks that are not negotiated by the stale date will be voided, and the Bank will be 

instructed to stop payment on those checks. A Payee’s claim will be extinguished if he, she, or it 

fails to negotiate his, her or its check by the stale date, and the funds will remain in the Fair 

Fund, except as provided in paragraph 63.
11

60. All Distribution Payments will be preceded or accompanied by a communication 

that includes, as appropriate: (a) a statement characterizing the distribution; (b) a statement that 

the tax treatment of the distribution is the responsibility of each Payee and that the Payee should 

consult his, her or its tax advisor for advice regarding the tax treatment of the distribution; (c) a 

statement that checks will be void and cannot be reissued after one hundred twenty (120) days

from the date the original check was issued; and (d) contact information for the Fund 

Administrator for questions regarding the Distribution Payment. The letter or other mailings to 

Payees characterizing a Distribution Payment will be prepared to the Tax Administrator and

submitted to the Commission staff for review and approval. 

61. All Distribution Payments, either on their face or in the accompanying mailing, 

will clearly indicate that the money is being distributed from the Fair Fund established by the 

Commission to compensate investors for harm as a result of securities law violations.

Post Distribution; Handing of Returned or Uncashed Checks; and Reissues

62. The Fund Administrator shall use its best efforts to make use of commercially 

available resources and other reasonably appropriate means to locate all Payees whose checks 

are returned to the Fund Administrator as “undeliverable.” If new address information becomes 

available, the Fund Administrator will repackage the distribution check and send it to the new 

address. If new address information is not available after a diligent search (and in no event no 

later than ninety (90) days after the initial mailing of the original check) or if the distribution 

check is returned again, the check shall be voided and the Fund Administrator shall instruct the 

issuing financial institution to stop payment on such check. If the Fund Administrator is unable 

to find a Payee’s correct address, the Fund Administrator, in its discretion, may remove such 

Payee from the distribution and the allocated Distribution Payment will remain in the Fair Fund 

for distribution, if feasible, to the remaining Payees.

63. The Fund Administrator will reissue checks or electronic payments to Payees 

upon the receipt of a valid, written request from the Payee if prior to the initial stale date. In 

cases where a Payee is unable to endorse a Distribution Payment check as written (e.g., name 

changes, IRA custodian changes, or recipient is deceased) and the Payee or a lawful 

representative requests the reissuance of a Distribution Payment check in a different name, the 

Fund Administrator will request, and must receive, documentation to support the requested 

change. The Fund Administrator will review the documentation to determine the authenticity 

and propriety of the change request. If, in the discretion of the Fund Administrator, such change 

request is properly documented, the Fund Administrator will issue an appropriately redrawn 

Distribution Payment to the requesting party. Reissued checks will be void at the later of one

hundred twenty (120) days from issuance of the original check or thirty (30) days from the 

reissuance, and in no event will a check be reissued after one hundred twenty (120) days from 

the date of the original issuance without the approval of Commission staff.

64. The Fund Administrator will work with the Bank and maintain information about 

uncashed checks and any returned items due to non-delivery, insufficient addresses, and/or other 

deficiencies. The Fund Administrator is responsible for researching and reconciling errors and 
12

reissuing payments when possible. The Fund Administrator is also responsible for accounting 

for all payments. The amount of all uncashed and undelivered payments will continue to be held 

in the Fair Fund. 

65. The Fund Administrator will make and document its best efforts to contact Payees 

to follow-up on the status of uncashed distribution checks over $100 (other than those returned 

as “undeliverable”) and take appropriate action to follow-up on the status of uncashed checks at 

the request of Commission staff. The Fund Administrator may reissue such checks, subject to 

the time limits detailed herein.

66. At the discretion of the Fund Administrator, certain costs that were not factored 

into the Reserve, such as bank fees for the return of a payment, may reduce the Payee’s 

Distribution Payment. In such situations, the Fund Administrator will immediately notify the 

Tax Administrator of the reduction in the Distribution Payment.

Receipt of Additional Funds

67. Should any additional funds be received pursuant to Commission or Court order, 

agreement, or otherwise, prior to the Commission’s termination of the Fair Fund, such funds will 

be added to the Fair Fund and distributed, if feasible, in accordance with the Plan, pursuant to the 

Commission’s Rules.

Disposition of Undistributed Funds

68. If funds remain following the initial distribution and payment of all 

Administrative Costs, the Fund Administrator, in consultation with the Commission staff, may 

seek subsequent distribution(s) of any available remaining funds, pursuant to the Commission’s 

Rules. All subsequent distributions shall be made in a manner that is consistent with this Plan. 

69. A residual within the Fair Fund will be established for any amounts remaining 

after the final disbursement to Payees from the Fair Fund and the payment of all Administrative 

Costs (the “Residual”). The Residual may include funds from, among other things, amounts 

remaining in the Reserve, distribution checks that have not been cashed, checks or electronic 

payments that were not delivered or were returned to the Commission, and tax refunds for 

overpayment of taxes or for waiver of IRS penalties.

70. All funds remaining in the Residual that are infeasible to distribute to investors 

will be returned to the Commission and transferred to the U.S. Treasury, subject to Section 

21F(g)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”), after the final 

accounting is approved by the Commission. Returning such money to the Respondent would be 

inconsistent with the equitable principle that no Person should profit from his wrongdoing. 

Therefore, in these circumstances distributing disgorged funds to the U.S. Treasury is the most 

equitable alternative.
13

Administrative Costs

71. All Administrative Costs will be paid from the Fair Fund in accordance with the 

Commission’s Rules. 

Accountings

72. In accordance with Rule 1105(f) of the Commission’s Rules, during the first ten 

(10) days of each calendar quarter after funds have been transferred to the Bank, the Fund 

Administrator will file with the Commission, on a standardized accounting form provided by the 

Commission staff, an accounting of all monies earned or received and all monies spent in 

connection with the administration of the Plan. 

73. Upon completion of all distributions to Payees pursuant to the procedures 

described above, the Fund Administrator shall arrange for the payment of all Administrative 

Costs, transfer all remaining funds to the Commission, and submit a final accounting for 

approval by the Commission on a standardized form provided by the Commission staff. The 

Fund Administrator will also submit a report to the Commission staff containing the final 

distribution statistics regarding distributions to individuals and entities, and such other 

information requested by the Commission staff.

Wind-down and Document Retention

74. The Fund Administrator will shut down the website, P.O. Box and customer 

service telephone line(s) established specifically for the administration of the Fair Fund six (6) 

months after the transfer of any remaining funds to the Commission, or at such earlier time as the 

Fund Administrator determines with the concurrence of the Commission staff. 

75. The Fund Administrator will retain all materials submitted by Preliminary 

Claimants in either paper or electronic form for a period of six (6) years from the date of 

approval of a final fund accounting. Materials maintained in electronic form must be accessible 

and readable for the duration of retention. Pursuant to the Commission staff's direction, the Fund 

Administrator will either turn over to the Commission or destroy all materials, including 

documents in any media, upon expiration of this period.

Termination of the Fair Fund

76. The Fair Fund will be eligible for termination and the Fund Administrator will be 

eligible for discharge after all of the following have occurred (a) a final accounting, in a standard 

accounting format provided by the Commission staff, has been submitted by the Fund 

Administrator and approved by the Commission; (b) all Administrative Costs have been paid; 

and (c) any amount remaining in the Fair Fund has been returned to the Commission for transfer 

to U.S. Treasury. Once the Commission has approved the final accounting, the Commission 

staff will seek an order from the Commission authorizing: (a) the transfer of the Residual that is 

infeasible to return to investors, and any amounts returned to the Fair Fund in the future that is 

infeasible to return to investors, to the general fund of the U.S. Treasury, subject to Section 
14

21F(g)(3) of the Exchange Act; (b) discharge of the Fund Administrator; (c) cancellation of the 

Fund Administrator’s bond; and (d) termination of the Fair Fund.
Exhibit A

PLAN OF ALLOCATION

This Plan of Allocation1is designed to compensate investors based on their losses 

associated with the purchase of binary options through EZTD's two online trading platforms, 

eztrader.com and globaloption.com (the “Securities”), from June 1, 2011 through August 31, 

2014 (the “Relevant Period”). Investors who did not purchase the Securities during the Relevant 

Period and did not suffer a loss as the result of the Respondent’s violative conduct are ineligible 

to recover under this Plan. Based upon documents obtained by the Commission during its 

investigation, including account-level transactional records, the Fund Administrator has 

identified those investors, or their lawful successors, who may have suffered losses due to the 

Respondent’s offering of the Securities (the “Preliminary Claimants”). 

For each Preliminary Claimant, the Recognized Loss will be calculated as follows: 

A. For each account, calculate the sum of the deposits made into the Preliminary 

Claimant’s account during the Relevant Period (“Deposit Amount”); 

B. For each account, calculate the sum of the withdrawals made from the 

Preliminary Claimant’s account during the Relevant Period (“Withdrawal 

Amount”); 

C. For each account, subtract the Withdrawal Amount from the Deposit Amount 

(“Account Losses”);

D. Calculate each Preliminary Claimant’s Recognized Loss as the sum of the 

Account Losses across all of the Preliminary Claimant’s accounts.

If the Recognized Loss is negative, reflecting a gain, then the Recognized Loss will be 

$0.00.

To avoid payment of a windfall, the Recognized Loss will be reduced by the amount of 

any compensation for the loss that resulted from the conduct described in the Order that was 

received from another source (e.g., class action settlement), to the extent known by the Fund 

Administrator. In the event of a subsequent distribution, the Distribution Payment from any 

previous distribution made under this Plan will be treated as prior compensation, reducing the 

Recognized Loss.

Any Preliminary Claimant who suffered a Recognized Loss pursuant to this Plan of 

Allocation, and who is not an Excluded Party or an Unresponsive Preliminary Claimant, as 

defined in the Plan, will be deemed an Eligible Claimant.

1

 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Plan.
2

Additional Provisions

Allocation of Funds: As the Net Available Fair Fund is less than the sum of the 

Recognized Losses of all Eligible Claimants, each Eligible Claimant’s distribution amount will 

equal his, her or its “Pro Rata Share” of the Net Available Fair Fund, subject to the “Minimum 

Distribution Amount.”

Pro Rata Share: A Pro Rata Share computation is intended to measure Eligible Claimants’ 

Recognized Losses against one another. The Fund Administrator shall determine each Eligible 

Claimant’s Pro Rata Share as the ratio of his, her, or its Recognized Loss to the sum of Recognized 

Losses of all Eligible Claimants.

Minimum Distribution Amount: The Minimum Distribution Amount will be $10.00. If 

an Eligible Claimant’s distribution amount is less than the Minimum Distribution Amount, that 

Eligible Claimant will be deemed ineligible to receive a Distribution Payment and his, her, or its 

distribution amount will be reallocated on a pro-rata basis to Eligible Claimants whose 

distribution amounts are greater than or equal to the Minimum Distribution Amount. 

Payee: An Eligible Claimant whose distribution amount equals or exceeds the Minimum 

Distribution Amount will be deemed a Payee.

Distribution Payment: Each Payee will receive a Distribution Payment equal to his, her, 

or its distribution amount. In no event will a Payee receive from the Fair Fund more than his, 

her, or its Recognized Loss.