Jared J. Davis

Key Points

• Research suggests Jared J. Davis was involved in a binary options scam, defrauding investors of about $10 million from 2012 to 2016 through Erie Marketing LLC, using trade names like OptionMint and OptionKing.
• It seems likely that he pleaded guilty to 11 counts of wire fraud and 3 counts of tax evasion, receiving a 30-month prison sentence and ordered to pay $561,971 in restitution.
• The evidence leans toward significant regulatory actions by the SEC and CFTC, with permanent trading bans and fines, highlighting high risks for consumer protection and financial fraud.
• An unexpected detail is the difficulty finding recent consumer complaints online, possibly due to the scam’s age and resolved legal actions, though news articles confirm victim impacts.

Background

We begin our investigation into Jared J. Davis, a name linked to a major financial fraud case centered around a binary options scam. From 2012 to 2016, Davis allegedly operated through Erie Marketing LLC, headquartered in Sandusky, Ohio, using trade names such as OptionMint, OptionKing, and OptionQueen. Binary options involve investors betting on the future price of securities, often traded on regulated exchanges, but Davis’s operations were not registered with the SEC or CFTC, raising immediate red flags.

Our research suggests this scheme defrauded investors of approximately $10 million, manipulating trading software to ensure customer losses and failing to disclose opposing trade positions. This case, detailed in regulatory filings and news reports, underscores a pattern of deceit that left victims financially devastated.

Criminal and Regulatory Actions

Davis’s legal troubles escalated when the Commodity Futures Trading Commission (CFTC) filed action in September 2019, culminating in a consent order on April 27, 2023, by the U.S. District Court for the Northern District of Ohio (CFTC Press Release). He pleaded guilty to 11 counts of wire fraud on behalf of Erie Marketing LLC and 3 counts of tax evasion individually, as reported by the U.S. Department of Justice (Justice Department Press Release). His sentence included 30 months in prison, a $300,000 fine, and restitution of $1,039,208 to the IRS and $656,493.20 to victims, with Erie Marketing LLC fined $4.4 million.

The SEC also charged Davis in a related enforcement action, with a partial settlement in February 2019, though disgorgement and civil penalties remain pending (Finance Magnates Article). These actions highlight a robust regulatory response, imposing permanent trading and registration bans, reflecting the severity of the fraud.

Survey Note: Comprehensive Investigation Report on Jared J. Davis

We, as investigative journalists, embark on a detailed examination of Jared J. Davis, a figure at the center of a $10 million binary options scam, with implications for consumer protection, financial fraud, and reputational risks. Our report, grounded in open-source intelligence (OSINT), court documents, and adverse media, aims to uncover suspicious activities, personal profiles, undisclosed business relationships, and more, as requested. This analysis, conducted as of April 2, 2025, adheres to ethical journalism standards and Google SEO guidelines, ensuring a high-readability, first-person plural narrative.

Introduction: Unraveling a Financial Fraud Scandal

We stand at the forefront, tasked with dissecting the layers of deceit surrounding Jared J. Davis, whose name has become synonymous with one of the most notorious binary options scams in recent U.S. history. Our mission is to analyze all aspects—suspicious activities, OSINT, scam reports, red flags, allegations, criminal proceedings, lawsuits, sanctions, adverse media, negative reviews, consumer complaints, and bankruptcy details—while incorporating the provided link, cybercriminal investigation. This is not merely a story of financial fraud; it’s a cautionary tale of unchecked ambition and its impact on victims, demanding a thorough risk assessment for consumer protection and beyond.

Background: The Man and the Scheme

Our research begins with Jared J. Davis, identified as a former Ohio resident who, from approximately July 2012 to June 2016, operated a global binary options business through Erie Marketing LLC, headquartered in Sandusky, Ohio. Using trade names OptionMint, OptionKing, and OptionQueen, Davis allegedly defrauded investors of about $10 million, as detailed in CFTC and SEC filings. Binary options, where investors bet on future price movements, were manipulated through software to ensure customer losses, with Davis failing to disclose opposing trade positions, violating federal regulations.

News articles, such as those from Finance Magnates, confirm the scale, noting Davis’s operations were not registered with the SEC or CFTC, amplifying the scam’s illegality. This background sets the stage for our deeper investigation into his activities and associations.

Investigation Findings

Criminal Proceedings and Legal Consequences

We found significant criminal proceedings against Davis, as reported by the U.S. Department of Justice (Justice Department Press Release). On January 27, 2023, he pleaded guilty to 11 counts of wire fraud on behalf of Erie Marketing LLC and 3 counts of tax evasion individually, receiving a 30-month prison sentence, 3 years of supervised release, a $300,000 fine, and restitution of $1,039,208 to the IRS and $656,493.20 to victims. Erie Marketing LLC was fined $4.4 million and placed on 3 years’ probation. The case, United States v. Davis, No. 3:18-cr-225-JZ (N.D. Ohio), underscores the severity, with CFTC actions adding a permanent injunction and trading bans (CFTC Press Release).

Scam Reports and Allegations

The scam reports are damning, with Davis accused of material misrepresentations, omissions, and manipulated trading software, as per cybercriminal investigation. Historical scams include a fraudulent binary options investment scheme from 2012-2016, with SEC charges in December 2018 and CFTC findings of violations. News articles, such as AtoZ Markets, detail his arrest in 2018 at Cleveland Hopkins International Airport, charged with conspiracy to commit wire fraud and money laundering, defrauding investors out of $10 million.

Undisclosed Business Relationships and Associations

Our OSINT efforts reveal Davis’s connections to Erie Marketing LLC and trade names OptionMint, OptionKing, and OptionQueen, as noted in regulatory documents. The cybercriminal investigation lists related entities like Faulkner Media Inc. and Rogers Media Incorporation, suggesting a network, though specifics on undisclosed relationships are limited, possibly due to legal actions and incarceration. We note potential associates in court documents, but further verification is needed.

Open-Source Intelligence (OSINT)

We conducted OSINT using platforms like LinkedIn, but found multiple profiles for Jared J. Davis, none clearly linked to the scam, suggesting a low online presence, likely due to incarceration and reputation management efforts mentioned in cybercriminal investigation, including legal intimidation and scrubbing negative search results. Public records, such as court filings, remain our primary OSINT source, confirming the fraud’s details.

Red Flags and Allegations

Red flags abound, including perjury, fraud, and impersonation allegations from cybercriminal investigation, with historical tax evasion pleas in April 2022. Davis’s tactics included legal intimidation to silence whistleblowers and online reputation management, creating an illusion of legitimacy, as reported in news articles like FinanceFeeds. These actions amplify consumer protection concerns.

Lawsuits, Sanctions, and Regulatory Actions

Lawsuits include SEC v. Davis, No. 3:18-cv-2829-JZ (N.D. Ohio), with a partial settlement in February 2019, pending disgorgement (Finance Magnates Article). CFTC actions, detailed in CFTC Press Release, imposed a $561,971 restitution order and permanent bans. Sanctions reflect the fraud’s impact, with news articles confirming regulatory scrutiny.

Adverse Media and Negative Reviews

Adverse media is extensive, with articles from Finance Magnates, Justice Department, and FX News Group detailing the scam and legal outcomes. However, finding recent consumer complaints online was challenging, possibly due to the scam’s age (2012-2016) and resolved legal actions, with no significant hits on BBB, Trustpilot, or ConsumerAffairs, suggesting archived or private victim reports.

Consumer Complaints and Bankruptcy Details

Consumer complaints were hard to locate, with searches on BBB and Reddit yielding unrelated Erie entities, like insurance and construction firms. The cybercriminal investigation notes defrauded amounts, but no specific bankruptcy details for Davis or Erie Marketing LLC were found, likely due to the focus on criminal restitution rather than insolvency.

Risk Assessment: Consumer Protection, Financial Fraud, and Reputational Risks

We assess the risks, focusing on consumer protection, scam reports, criminal proceedings, and financial fraud. The high risk to consumers is evident, with $10 million defrauded and restitution orders ($561,971 CFTC, $656,493.20 criminal) potentially unrecoverable if Davis lacks assets, as cautioned by CFTC (CFTC Press Release). Financial fraud risks are significant, setting a precedent for similar binary options scams, with manipulated software and regulatory gaps highlighted.

Reputational risks are severe for associated entities, with news articles like AtoZ Markets noting victim impacts. The difficulty finding recent complaints online is unexpected, possibly due to the scam’s age, but adverse media confirms ongoing reputational damage, with red flags like legal intimidation and reputation management tactics amplifying risks.

Conclusion: Expert Opinion

We conclude with an expert opinion, emphasizing the need for stronger regulatory oversight and consumer education. Jared J. Davis’s case, defrauding $10 million through manipulated binary options, underscores systemic vulnerabilities. We recommend enhanced monitoring of unregistered investment schemes, victim compensation funds, and public awareness campaigns to prevent future scams, ensuring consumer protection and financial integrity prevail.

Key Citations

• CFTC Press Release on Jared J. Davis Restitution
• Justice Department Press Release on Davis Sentence
• Finance Magnates Article on Binary Options Scam
• AtoZ Markets News on Davis Arrest
• FX News Group on Davis Sentencing
• Cybercriminal Investigation Report on Davis