Alleged binary options fraudster Yehuda Belsky wants to have electronic monitoring condition vacated

Maria Nikolova

Defense counsel argues any defrauding of investors can occur without Belsky’s use of a personal computing device.

Alleged binary options scammer Yehuda Belsky, also known as “Jay Bell,” wants the Court to modify the conditions of his pretrial release as to free himself of electronic monitoring. The relevant motion was submitted at the New York Eastern District Court on Monday, October 29th.

Belsky is charged in a three-count Indictment, alleging (1) mail fraud; (2) failure to register as a Commodity Trading Advisor; and (3) misappropriation of customer funds. These allegations arise out of claims that Belsky made misrepresentations in the solicitation and use of investor funds and instead used such funds “he received to margin, guarantee and secure the trades and contracts of one or more customers,”, for his own personal use and profits. Also, the indictment alleges that Belsky traded in options contracts without being registered as required by federal regulations and the relevant regulator, the Commodity Futures Trading Commission (CFTC), and for intentionally misappropriating customer funds without being registered as a commodity trading advisor.

At the presentment in September this year, Pretrial Services initially recommended a condition of pretrial release to include no computer usage at all by Belsky while on bail. But afterwards the parties jointly agreed this condition was overbroad and, instead, the government proposed that the condition should include electronic monitoring by Pretrial Services of all of Belsky’s personal devices that connect to the Internet.

Now, however, the defense counsel argues that the monitoring software is “incredibly comprehensive”.

The software implemented by Pretrial Services is called “RemoteCOM.” It records everything Belsky does on the monitored device, including but not limited to: websites visited, software programs accessed, all text and e-mail communications. Unrelated content that the government is authorized to access includes issues concerning Belsky’s minor children or wife; medical illnesses or conditions; family private affairs; and even attorney-client communications.

According to the defense, the RemoteCOM monitoring is impermissibly overbroad violating Belsky’s First, Fourth and Fifth Amendment rights and the limiting principles and mandates of the Bail Reform Act.

More interestingly, the defense counsel says that the government and Pretrial Services view this monitoring condition as necessary to prevent Belsky from soliciting and receiving funds from others for the purpose of making investments for which he is not licensed, such as commodities, futures and options trading. But, the defense argues, any defrauding of investors can occur without Belsky’s use of a personal computing device. According to the defense counsel, the same conduct can be completed using other people’s computers, or without computer usage at all, by, for example, phoning in investments on trading exchanges.

Therefore, defense counsel insists that the condition of electronic monitoring should be vacated.

The case is captioned USA v. Belsky (1:18-cr-00504).

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio.