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This case was last updated from PACER on 06/15/2021 at 14:42:15 (UTC).

Securities and Exchange Commission v. Spot Tech House, Ltd et al

Case Summary

On April 16, 2021, the Securities and Exchange Commission (the “SEC”) or (“Plaintiff”), represented by  Kenneth W. Donnelly, Melissa Armstrong, and Samantha M Williams, attorneys at the SEC, filed a civil enforcement action against Malhaz Pinhas Patarkazishvili (“Pini Peter”), Ran Amiran (“Amiran”) and Spot Option, Ltd. (“Spot Option”) now known as Spot Option Tech House, Ltd. (collectively, “Defendants''), seeking permanent injunctive relief and disgorgement of all ill-gotten gains among other reliefs, for an alleged multi-million dollar fraudulent scheme involving unregistered offers and sales of security-based “binary options'' to retail investors. This case was filed in the U.S. District Court for the District of Nevada with Judges Daniel J. Albregts and James C. Mahan presiding. 

 

In the complaint, the Plaintiff alleged that ”This case concerns a multi-million dollar fraudulent scheme involving unregistered offers and sales of security-based “binary options” to retail investors in the United States from at least April 2012 through August 2017 (the “Relevant

Period”).”

 

The Plaintiff further alleged that “To make the fraud scheme profitable, Spot Option set the payout terms on its options in a way that made it likely that most investors would lose all or a substantial portion of their investment within the first five months of trading. Spot Option trained “White Labels,” and “Brands” (hereinafter, “Partners”), however, to deceptively market the binary options as profitable investments. Spot Option used additional deceptive and manipulative practices to increase investors’ losses and boost Spot Options’ income stream. These practices included manipulating the trading platform to increase the probability that trading would be unprofitable and offering investors a so-called “bonus” to lock up investor funds and prevent withdrawals, which, when combined with the payout terms, virtually guaranteed investor losses. Many of those investors lost most of their money including, in some cases, hundreds of thousands of dollars meant for retirement. Spot Option and its Partners, on the other hand, raked in millions in profits.”

 

The Plaintiff also alleged that “Spot Option, Pini Peter & Amiran by engaging in the conduct in the offer or sale of securities, by the use of means of instrumentalities of transportation or communication in interstate commerce or by use of the mails directly or indirectly: (a) knowingly or recklessly employed devices, scheme or artifices to defraud; (b) knowingly, recklessly, or negligently obtained money or property by means of any untrue statements of material fact, or by omitting to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and/or (c) knowingly, recklessly or negligently engaged in transactions, practices, or courses of business which operated or would operate as a fraud or deceit upon the purchasers of securities.”

 

There are four claims for relief laid down by the Plaintiff. These are for (a) alleged Unregistered Offer or Sale of Securities in Violations of Section 5 of the Securities Act against All Defendants, (b) alleged Fraud in Connection with the Purchase or Sale of Securities Violations of Section 10(b) of the Exchange Act and Rule 10b-5 Thereunder against Spot Option; (c) alleged Fraud in the Offer or Sale of Securities Violations of Section 17(a) of the Securities Act against Spot Option, and (d) alleged Control Person Liability under Section 20(a) of the Exchange Act for Spot Option’s Violations of Section 10(b) of the Exchange Act and Rule 10b-5 against Pini Peter and Amiran.

 

In its prayer for relief, the Plaintiff has requested the Court to declare that Defendants committed the alleged violations; to order disgorgement of all ill-gotten gains; and to repatriate any ill-gotten funds or assets they caused to be sent overseas. The Plaintiff further requested the Court to  order the Defendants to pay civil penalties; permanently enjoin all Defendants from directly or indirectly violating the alleged provisions; permanently enjoin Spot Option from directly or indirectly violating the alleged provisions; and grant specific conduct-based injunctions against Defendants Pini Peter and Amiran. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-00632

  • Filing Date:

    04/16/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Court:

    U.S. District Courts

  • Courthouse:

    Nevada District

Judge Details

Referral Judge

Daniel J. Albregts

Presiding Judge

James C. Mahan

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Spot Tech House, Ltd

Malhaz Pinhas Patarkazishvili

Spot Option, Ltd

Ran Amiran

Pinhas Peter

Pini Peter

Attorney/Law Firm Details

Plaintiff Attorneys

Melissa Armstrong

Attorney at Securities and Exchange Commission

100 F Street N.E.

Washington, DC 20549

Kenneth W Donnelly

Attorney at Securities and Exchange Commission

100 F Street N.E.

Washington, DC 20549

Samantha M Williams

Attorney at United States Securities and Exchange Commission

100 F Street N.E.

Washington, DC 20549

Kenneth Wade Donnelly

Attorney at Securities and Exchange Commission

100 F St. Ne

Washington, DC 20549

 

Court Documents

#9

(#9) ORDER Granting #7 SEC's Motion for Alternative Service of Process. IT IS FURTHER ORDERED that the SEC must also serve Jeff Ifrah by mail. Signed by Magistrate Judge Daniel J. Albregts on 6/11/2021.(Copies have been distributed pursuant to the NEF - YAW) (Entered: 06/11/2021)

#8

(#8) Submission of PROPOSED ORDER on #7 Motion, by Plaintiff Securities and Exchange Commission. (Donnelly, Kenneth) (Entered: 06/07/2021)

7 #8

Exhibit 6

7 #7

Exhibit 5

7 #6

Exhibit 4

7 #5

Exhibit 3

7 #4

Exhibit 2

7 #3

Exhibit 1

7 #2

Index of Exhibits

7 #1

Declaration of Deborah Maisel

#7

(#7) MOTION and Memorandum of Points and Authorities in Support of Motion for Alternative Service of Process by Plaintiff Securities and Exchange Commission. Responses due by 6/21/2021. (Attachments: #1 Declaration of Deborah Maisel, #2 Index of Exhibits, #3 Exhibit 1, #4 Exhibit 2, #5 Exhibit 3, #6 Exhibit 4, #7 Exhibit 5, #8 Exhibit 6) (Donnelly, Kenneth) (Entered: 06/07/2021)

#6

(#6) ORDER Granting #5 Motion to Withdraw as Attorney. Melissa Armstrong withdrawn from the case. Signed by Magistrate Judge Daniel J. Albregts on 5/4/2021. (Copies have been distributed pursuant to the NEF - MR) (Entered: 05/04/2021)

#5

(#5) MOTION to Withdraw as Attorney by Melissa J. Armstrong for Plaintiff Securities and Exchange Commission. (Armstrong, Melissa) (Entered: 05/03/2021)

#4

(#4) ORDER Granting #2 Motion to Admit Government Attorney. Signed by Judge James C. Mahan on 4/28/2021. (Copies have been distributed pursuant to the NEF - JQC) (Entered: 04/28/2021)

#3

(#3) Summons Issued as to Ran Amiran, Malhaz Pinhas Patarkazishvili, Spot Tech House, Ltd re #1 Complaint (HAM) (Entered: 04/19/2021)

#2

(#2) MOTION to Admit Government Attorney Melissa Armstrong, Kenneth W. Donnelly, Samantha M. Williams by Plaintiff Securities and Exchange Commission. (Armstrong, Melissa) (Entered: 04/16/2021)

1 #2

Summons Spot Tech House, Ltd f/k/a Spot Option, Ltd

#1

(#1) COMPLAINT against All Defendants by Securities and Exchange Commission. Proof of service due by 7/15/2021. (Attachments: #1 Civil Cover Sheet, #2 Summons Spot Tech House, Ltd f/k/a Spot Option, Ltd, #3 Summons Malhaz Pinhas Patarkazishvili a/k/a Pini Peter a/k/a Pinhas Peter, #4 Summons Ran Amiran) (Armstrong, Melissa) NOTICE of Certificate of Interested Parties requirement: Under Local Rule 7.1-1, a party must immediately file its disclosure statement with its first appearance, pleading, petition, motion, response, or other request addressed to the court. (Entered: 04/16/2021)

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Docket Entries

  • 06/11/2021
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  • Docket(#9) ORDER Granting #7 SEC's Motion for Alternative Service of Process. IT IS FURTHER ORDERED that the SEC must also serve Jeff Ifrah by mail. Signed by Magistrate Judge Daniel J. Albregts on 6/11/2021.(Copies have been distributed pursuant to the NEF - YAW) (Entered: 06/11/2021)

    Read MoreRead Less
  • 06/07/2021
  • View Court Documents
  • Docket(#8) Submission of PROPOSED ORDER on #7 Motion, by Plaintiff Securities and Exchange Commission. (Donnelly, Kenneth) (Entered: 06/07/2021)

    Read MoreRead Less
  • 06/07/2021
  • View Court Documents
  • Docket(#7) MOTION and Memorandum of Points and Authorities in Support of Motion for Alternative Service of Process by Plaintiff Securities and Exchange Commission. Responses due by 6/21/2021. (Attachments: #1 Declaration of Deborah Maisel, #2 Index of Exhibits, #3 Exhibit 1, #4 Exhibit 2, #5 Exhibit 3, #6 Exhibit 4, #7 Exhibit 5, #8 Exhibit 6) (Donnelly, Kenneth) (Entered: 06/07/2021)

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  • 05/04/2021
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  • Docket(#6) ORDER Granting #5 Motion to Withdraw as Attorney. Melissa Armstrong withdrawn from the case. Signed by Magistrate Judge Daniel J. Albregts on 5/4/2021. (Copies have been distributed pursuant to the NEF - MR) (Entered: 05/04/2021)

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  • 05/03/2021
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  • Docket(#5) MOTION to Withdraw as Attorney by Melissa J. Armstrong for Plaintiff Securities and Exchange Commission. (Armstrong, Melissa) (Entered: 05/03/2021)

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  • 04/28/2021
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  • Docket(#4) ORDER Granting #2 Motion to Admit Government Attorney. Signed by Judge James C. Mahan on 4/28/2021. (Copies have been distributed pursuant to the NEF - JQC) (Entered: 04/28/2021)

    Read MoreRead Less
  • 04/19/2021
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  • Docket(#3) Summons Issued as to Ran Amiran, Malhaz Pinhas Patarkazishvili, Spot Tech House, Ltd re #1 Complaint (HAM) (Entered: 04/19/2021)

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  • 04/19/2021
  • DocketCase randomly assigned to Judge James C. Mahan and Magistrate Judge Daniel J. Albregts. (HAM) (Entered: 04/19/2021)

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  • 04/16/2021
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  • Docket(#2) MOTION to Admit Government Attorney Melissa Armstrong, Kenneth W. Donnelly, Samantha M. Williams by Plaintiff Securities and Exchange Commission. (Armstrong, Melissa) (Entered: 04/16/2021)

    Read MoreRead Less
  • 04/16/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against All Defendants by Securities and Exchange Commission. Proof of service due by 7/15/2021. (Attachments: #1 Civil Cover Sheet, #2 Summons Spot Tech House, Ltd f/k/a Spot Option, Ltd, #3 Summons Malhaz Pinhas Patarkazishvili a/k/a Pini Peter a/k/a Pinhas Peter, #4 Summons Ran Amiran) (Armstrong, Melissa) NOTICE of Certificate of Interested Parties requirement: Under Local Rule 7.1-1, a party must immediately file its disclosure statement with its first appearance, pleading, petition, motion, response, or other request addressed to the court. (Entered: 04/16/2021)

    Read MoreRead Less
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