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FBI arrests owner of Bigoption, Binarybook brokers, charges carry up to 40 years in jail

 FBI agents have arrested Lee Elbaz, 36, the CEO of Yukom Communications Ltd., owner of the two binary options brands Bigoption, Binarybook, reports The Times of Israel.

 

According to the publication, Elbaz was apprehended last week at the JFK airport upon landing and was charged with with wire fraud and conspiracy to commit wire fraud.  Both offences carry up to 20 years in prison. For the time being Elbaz is under house arrest on bail of $1.8 million posted by her aunt.

 

The publicly available court documents filed by the FBI claim that Elbaz, as a CEO of Yukom Communications Ltd., the company operating the unregulated binary options brokers Binarybook and Bigoption have defrauded thousands of investors, including Americans, out of millions of dollars. The US authorities accuse her and other company employees of making false statements of the safety of binary options investments, promising high returns and lying about money withdrawals and the location and qualifications of “brokers” assisting victims. The FBI also claims Elbaz and the company employees of failing to inform the investors that the binary options companies only make money when their clients lose, and of failing to disclose that her company was allegedly conspiring with another company called SpotOption to manipulate the outcomes of trades.

 

Furthermore, neither of the two brokers has a license to operate in the US, where are allowed only exchange-traded binary options.

 

According to The Times of Israel, the charges against Elbaz are the result of the investigation of the binary options brokers launched by FBI this February.

 

Our check revealed that neither Binarybook, nor Bigoption provide clear information about their ownership or regulation. Both brokers promise fantastic returns ranging from 250 to 1500%.

 

Earlier this year the FBI has published a warning against unregulated binary options brokers and platforms, noting that losses from such scams run into the millions.

 

 

TAGS: fbi  fraud  Lee Elbaz  Bigoption  Binarybook 
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