The Associated Press reported a binary options scam involving 4 Israeli women. The scam was multimillion-dollars in amplitude which resulted in Federal charges in Maryland against four women who worked for Israeli company. The FBI affidavit stated that over $99 million may have been scammed in one year alone.
The scam, of course, commenced with a sales pitch and script: You will succeed in “95% of your trades” if you hand over your money. According to an FBI Affidavit, the saleswomen stated: “If you win, I win.”
The Binary Options scam, of course, was securities fraud under Section 10 of the Securities Exchange Act of 1934.http://www.BrokerFraud.Net
The name of the Company was “Yukom Communications.” One can speculate that the name was created to rhyme with “Yukon”, an area in Canada where gold was once found. “Guaranteed returns” were returned of up to 40 percent. The scam was alleged investment in “binary options”, a sales pitch also used by Bernard L. Madoff.
The information comes from FBI affidavits filed in the case.
“Binary Options” trading involves when legitimate, the purchase of potions to purchase asset (stocks for example) on both the long and short sides (puts and calls), so the investor wins if there is price movement. But this was a scam only. The FBI affidavits were unclear as to whether there were any purchases of the options at all, or that simply “money” was collected and stolen based on the sales touting.
Lee Elbaz, an Israeli citizen, was “point woman” who was called “CEO” of Yukom. Elbaz ran services with brand names “BinaryBook” and “BigOption.” Elbaz, 37, was indicted in March on three counts of wire fraud and one count of conspiracy to commit wire fraud. She was arrested in 2017 while traveling to the U.S.
Related charges have been filed against three other women employed by Yukom, Shira Uzan and Liora Welles. Uzan and Welles were charged with conspiracy to commit wire fraud. One Lisa Mel was also charged with wire fraud.
Welles and Uzan, both employed by Yukom have already pled guilty to conspiracy in separate hearings and will be sentenced in March. Welles and Uzan admitted they were “responsible” for approximately $2.4 million and $1.8 million in investor losses, respectively, according to court filings.
BinaryBook received deposits of about $99 million from the second quarter of 2014 through the fourth quarter of 2016. About $20 million was returned to its clients, according to the FBI.
BinaryBook sales people targeted retirees mostly.
Anthony M. Abraham, Esq., PC, has represented many investors who have claimed against Ponzi estates, bankrupt and other estates for return of assets stolen from investors through fraud. Anthony M. Abraham, Esq., PC is experienced in churning and unauthorized trading claims. If you were victimized in this Ponzi scheme and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.http://www.BrokerFraud.Net