Israeli Co. CEO Defrauds US Investors With False ClaimsAugust 16, 2019
The former CEO of Israeli Company Yukom Communications was found guilty of defrauding investors in the U.S. and other countries by fraudulently marketing about $145 million in “binary options,” a statement by the U.S Department of Justice said.
Based on a complaint, Lee Elbaz, a 38-year old Israeli citizen, was arrested in September 2017 and was indicted in March 2018. He is scheduled to be sentenced on December 9 this year.
A three-week jury trial before U.S. District Judge Theodore D. Chuang of the District of Maryland found Elbaz guilty of three counts of wire fraud and one count of conspiracy to commit wire fraud.
This case was investigated by the FBI’s Washington Field Office, along with analysts and the U.S. Department of Justice.
“This verdict demonstrates that the Department will hold accountable those who deceive American investors with false claims and rates of returns,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Elbaz was charged of managing a scheme to dishonestly sell binary options to the investors using two websites – BinaryBook and BigOption. She, being the CEO, was was supported by the subordinates.
The conspirators misrepresented the suitability of and expected return on investments as well as how investors could withdraw funds from their accounts.
They also provided investors with false names and qualifications and falsely claimed to be working from London to attract investments.
The evidence presented also showed how the terms of so-called “bonuses,” “risk free trades” and “insured trades” were misrepresented to deceive the investors.
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