Investigation of binary options fraud

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investigation of binary options

Yakov Cohen, 27; Yosef Herzog, 54; Ori Maymon, 33; Nissim Alfasi, 33; Elad Bigelman, 37; Runal Jeebun, 29; Sabrina Elofer, 28; Afik Tori, 27; Anog Maarek, 28; Oron Bernard Law Montgomery, 38; David Barzilay, 41; Gilad Mazugi, 36; Hadas Ben Haim, 34; Yousef Bishara, 32; and Nir Erez, 29, all cutting-edge or former citizens of Israel, have been charged in an indictment back inside the District of Maryland with one matter of conspiracy to dedicate twine fraud and 3 counts of cord fraud. Maarek regarded Friday earlier than U.S. Magistrate Judge Timothy J. Sullivan within the District of Maryland. Maarek become extradited from Hungary, after his arrest in September 2019, with the aid of Hungarian law enforcement.

The indictment alleges that starting in 2014, the choices defendants and their co-conspirators fraudulently sold and advertised binary options to investors located in the United States and throughout the arena thru websites, called BinaryBook and BigOption. The indictment alleges that the choices defendants and their co-conspirators all worked for an Israel-based totally organisation known as Yukom Communications, a purported sales and advertising company. The indictment further alleges that Cohen and Herzog had possession pursuits in Yukom Communications and different associated entities that were used to perpetrate the choices fraud scheme.

As alleged within the indictment, the defendants and their co-conspirators misled investors with the aid of falsely claiming to represent the choices pursuits of buyers whilst, in truth, the choices proprietors of BinaryBook and BigOption profited while investors lost cash. In addition, the choices indictment alleges that the choices defendants and their co-conspirators misrepresented the suitability of and predicted return on investments via BinaryBook and BigOption, used fake names and qualifications while speakme to traders, and falsely claimed to be operating from London, when they have been running from Israel. The indictment alleges the choices defendants and their co-conspirators also misrepresented whether or not and how buyers may want to withdraw funds from their bills and misrepresented the choices phrases of so-called “bonuses,” “danger free trades” and “insured trades,” and deceptively used those meant benefits in a manner that in reality harmed traders.

An indictment is simply an allegation and all defendants are presumed innocent until established guilty beyond a reasonable doubt in a court of law.

In a associated case, Lee Elbaz, the former CEO of Yukom and a citizen of Israel, was found guilty in August 2019 after a three-week jury trial of 1 matter of conspiracy to dedicate wire fraud and 3 counts of twine fraud. Five additional former employees of Yukom and its affiliated corporations have additionally pleaded responsible to conspiracy to dedicate wire fraud.

The FBI’s Washington Field Office investigated this case. Assistant Chiefs L. Rush Atkinson and Caitlin R. Cottingham of the Criminal Division’s Fraud Section are prosecuting the choices case. The Criminal Division’s Office of International Affairs also furnished help in this matter.