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by Mike Caswell

The U.S. Securities and Exchange Commission has won a $45.9-million judgment against Jonathan Mimun, a Canadian who was behind a three-year binary options scheme run from Israel. (All figures are in U.S. dollars.) The SEC claimed that he and a co-accused ran a boiler room that promised investors monthly returns of 25 per cent. The trades were supposedly based on the prices of listed companies, but in reality they were rigged against investors, the SEC said.

The penalty for Mr. Mimun is contained in a judgment handed down in federal court in Nevada on Friday, March 29. The $45.9-million includes disgorgement of $25.7-million in gains, plus interest, and a $12.8-million fine. The judge has also barred him from future violations. The judgment is one handed down by default, as Mr. Mimun ignored the case.

Also penalized in Friday's judgment is Mr. Mimun's co-accused, Israeli resident Ronn BenHarav. The SEC said that Mr. BenHarav was the "number one" who "bullied" everyone in the office and directed the operation. The penalties for him are identical to those of Mr. Mimun, with Friday's judgment including a fine of $12.8-million. He and Mr. Mimun are jointly liable for the $25.7-million disgorgement amount, plus interest. As with Mr. Mimun, he ignored the case.

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