The US Commodity Futures Trading Commission has is requesting entry of default against those accused of a $103 million binary options scam. According to the claim, the commission pointed out that the time to get defendants for the case, which includes four individuals and five entities, has expired.
The four convicted individuals include Yukom CEO Lee Elbaz, Shalom Peretz, Yakov Cohen, as well as Yossi Herzog. They were accused of conspiracy in the Binary options scam, by the United States’ government since August last year.
The fraudulent scheme involved five companies, including Zoralex Ltd (Binary Online), WSB Investment Limited (BinaryBook), Wirestech Limited (BigOption), Linkopia Mauritius Ltd, as well as Yokum Communications Ltd.
The aforementioned entities were based in Marshal Islands, Mauritius, the UK, Israel, and other offshore jurisdictions. Their main victims were investors in the U.S. and other places.
Charges similar to charges against Lee Elbaz
The charges labeled against these companies and their executives were based on the same findings and allegations labeled against Lee Elbaz, who was criminally convicted for conspiracy to perpetuate wire fraud in August last year.
According to the CFTC, the accused made use of high-pressure sales methods and deceitfully manipulated the trades of their clients to cause losses while yielding profits to their companies. After gaining profits to an expected level, the defendants misappropriated the money.
Additionally, the CFTC said the defendants used foreign names to create offshore bank accounts, thereby concealing the true nature of the operations.
In a statement made separately, the commission stated it has sent notification to the defendants about the criminal charges levied against them in the U.S. CFTC stated that it issued such notices either to the companies, through emails, or via a legal notice published in The Times of Israel, informing Shalom Peretz, Yakov Cohen, and Yossi Herzog about the indictment.
But since the commission could not locate the three indicted Israelis, they may not attend the criminal proceedings of the court.
Defendants also named in other lawsuits
Apart from the allegations by the CFTC, there have been other legal cases against the defendants. The other lawsuits are suing the defendants with the same underlying evidence the CFTC is using against Lee Elbaz, who was sentenced to prison for 22 years for her major role in the $140 million binary options fraud.
Lee Elbaz’s former bosses, who owned binary options websites BinaryBook and BigOptions, as well as 13 other workers, were also convicted on fraudulent activities by a court in Maryland.
Other conspirators mentioned
The two defendants in the case are Yosef Herzog, 54, and Yakov Cohen, 27, who are part owners of the Yukom communications and other related entities.
Additionally, the complaints also mentioned other conspirators, which include Yousef Bishara, 32, Hadas Ben Haim, 34; Gilad Mazugi, 36; Runal Jeebun, 29; Nissim Alfasi, 33; and Ori Maymon, 33.