The US Commodity Futures Trading Commission (CFTC) has recently started to push for an entry of default. This entry of default is against the perpetrators of a binary options scam that managed to gain $103 million in stolen funds. As the CFTC claims, the time frame given to the defendants, which are four individuals and five entities, to respond to the lawsuit in question has expired.
Worldwide Binary Options Scam
The individual defendants, in this case, Yakov Cohen, Yossi Herzog, Lee Elbaz, and Shalom Peretz, had been hit with lawsuits by the US government since August of 2019. The scheme itself involved the binary options brands of Linkopia Mauritius Ltd, Yukon Communications Ltd, WSB Investment Limited (BinaryBook), Wirestech Limited (BigOption), as well as Zolarex Ltd (BinaryOnline). It should be noted that Lee Elbaz, in particular, stood as the CEO of Yukom.
These companies were based across the globe, with the UK, Israel, Mauritius, the Marshall Islands, as well as other offshore jurisdictions being included. All these jurisdictions targeted investors across the globe, with the US citizens being the one that sparked the ire of the CFTC.
Stealing Money From The Unsuspecting
Lee Elbaz has already been convicted, and the complaint in questions focusing against these execs runs in parallel and uses the same findings that were used in Elbaz’s case. Elbaz himself was found guilty of conspiracy to commit wire fraud and wire fraud, proper, back in August of 2019.
According to the CFTC. The defendants leveraged high-pressure sales tactics, opting to generate profits for their companies by the express manipulation of their client’s trades to induce losses on their part. Ultimately, these defendants misappropriate the funds for their own personal gain. Furthermore, the CFTC claims that the defendants had actively concealed the true nature of the operation through the use of foreign names in order to open offshore bank accounts.
All Parties Served
Through separate statements, the CFTC stated that it had served all the defendants that they could manage to sue within the US. They did so through legal notice publishing through The Times of Israel, or through emails to various companies. Through this, they had attempted to inform all parties, and have yet to see a reply to the lawsuit.
Even so, the regulator did not seem to locate three Israelis, so they may not show up to the criminal proceedings of the Court against them.