The fraud scandal that rocked Yokum over a month ago seems to have resurfaced with the arrest of another company executive. About a month ago, the company’s former CEO, Lee Elbaz, was found guilty on charges of a binary options fraud scheme to the tune of $145m.
Surfacing reports say that a 28 year old man of dual Israeli – French citizenship, and a 44 year old American citizen, were arrested by the Hungarian police on Saturday. The 28 year old man in custody is said to be Yokum’s former Vice President of Marketing named Daniel. The two men are being charged on suspicion of having defrauded several American investors during their tenure at Yokum. The fraud is said to have been committed through call center activity from entities operating in Mauritius and Ukraine.
The arrests have reportedly come after a coordinated investigation between Hungarian police and the Federal Bureau of Investigation (FBI). Due to the involvement of American authorities and the charges involving the defrauding of US citizens, the pair is facing possible extradition to the US. They could be facing up to 20 years of jail time if they are found guilty of the charges being laid against them.
Binary options fraud case
These arrests add another layer to the much publicized scandal involving Yokum. The binary options fraud case saw the firm’s former CEO appear before a District Maryland court on charges of participating in a global fraud scheme. Elbaz, an Israeli citizen, was indicted in March 2018 with other defendants who were involved with Yokum. Five of the defendants involved in the case have pleaded guilty to the charges they are facing and have agreed to assist prosecutors with the case.
Another individual arrested in connection with the fraud case is Lissa Mel, a 31 year old Israeli citizen. Mel was employed as a sales representative for Yokum between July 2015 and November 2016. During this time, Mel misleads the firm’s clients by referring to herself as a Chief Analyst, Senior Broker, or Accounting Manager for the company. She was sentenced to 12 months in prison and ordered to pay $288,024 to the victims of her crimes.
With the latest arrests made by the Hungarian police service, it can be seen that the issue regarding Yokum is far from over. It can be expected that more arrests will be made in the coming months as prosecutors continue to make their case against the company’s representatives.