Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Business Crimes BulletinColumns & DepartmentsLitigationWhite Collar Crime

In The Courts

By Juliet Gunev
September 01, 2019

Maryland Jury Convicts Former CEO of Israeli Company for Role In $145 Million Binary Options Fraud

Lee Elbaz, an Israeli citizen and former CEO of Israel-based company Yukom Communications (Yukom), has been found guilty following a three week jury trial in Maryland for her part in orchestrating a global scheme to defraud tens of thousands of investors via the fraudulent sale of $145 million worth of financial instruments known as "binary options." Elbaz, employed as a team leader overseeing sales agents at Yukom in mid-2014 before being promoted to the company's CEO, was convicted on three counts of wire fraud and three counts of conspiracy to commit wire fraud in connection with the scheme. The trial followed her arrest at New York's JFK airport in September 2017.

The scheme related to sales, marketing and investor retention services provided by Yukom to two Web-based businesses, BinaryBook and BigOption, both of which fraudulently sold and marketed binary options to customers globally, including in the U.S.. Binary options involve speculating on the value of a financial asset such as currency or stock at a certain time of day — essentially betting on whether the price will rise or fall within a set period. In return for investing, option holders were promised that they would receive either a pre-determined amount of cash or nothing, depending on the accuracy of their prediction.

This premium content is locked for Business Crimes Bulletin subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.