Shortly after Binary Options fraudster, Lee Elbaz was issued a jail term of 22 years. He has responded with an appeal, challenging the jail term. The U.S. Court of Appeal pronounced the sentence on the 19th of December after Elbaz was found guilty for committing frauds related to binary options.
Before his conviction and sentence, Elbaz was the CEO of Yukom Communications, an Israeli-based company.
Elbaz sent an appeal two days ago to challenge the 22-year sentence. According to the filed notice, Elbaz’s defendant said, following the Federal Rule of Appetite Procedure, it is appealing to the U.S. Court of Appeal based on the judgment passed on the accused on 19th of December 2019. As at the time of writing, the defendant has not made any further statements regarding the appeal.
Evidence of trial
Based on the presented evidence in court, Elbaz and her accomplices deceitfully marketed and sold Binary options to U.S. investors and other investors in other parts of the world. The case reads that they sold these fraudulent binary options via two websites, BigOption and BinaryBook.
Based on the evidence, Elbaz acted in a way that showed complete intent to deceive and defraud investors of their investment funds. It further revealed that the accused, his fellow accomplices, and subordinates misled investors through the websites.
They falsely claimed to represent investors’ interests, when in the real sense, the operators of the sites receive profits whenever the investors lose their money. The accusations are based on concrete research and investigation about the situation.
From the investigation, it was further revealed that the accused deliberately misrepresented the expected return and suitability of the investment to the investors. They falsely claimed they were working from London and gave the investors fake names and qualifications.
According to the reports on the case, the entire foundation of the websites was a complete hoax, because many of their claims were reportedly false. Finally, the claim on the case added that the accused gave wrong information on the withdrawal methods available to the investors.
The representatives of the BigOption and BinaryBook, who were under supervision by Elbaz, misrepresented a lot of terms in their business deals. According to the claim, the words, “insured trades”, “risk-free trades’ and “bonuses” were supposedly used in a context that causes more financial loss to the investors. Those words were falsely used to entice investors to invest in a project that was intentionally designed to defraud victims. Evidence showed that the deceptive interpretation of the words in their websites harmed investors.
Elbaz’s co-conspirators also indicted
Already, five of Elbaz’s former workers have pleaded guilty to the crime. They include Lissa Mel, Austin Smith, Yair Hadar, Shira Uzan, and Liora Welles. They have accepted their wrongdoing to perpetuate wire fraud.
The convicted persons have already been sentenced to various jail terms, based on the level of their involvement in the fraud. However, their jail terms are significantly lower than Elbaz’s, considering their earlier guilty plea and corporation against Elbaz. Hadar, Uzan, and Wellez.
Smith, Hadar, and Uzan all testified against Elbaz and helped to speed up the proceedings of the case.