Binary options fraudster Lee Elbaz needs access to mental health services, Counsel says

Maria Nikolova

“Being detained in a foreign country where she has no friends and limited interactions with the outside community has placed an immense strain on Ms. Elbaz’s mental health and well-being”, Defense Counsel says.

Binary options fraudster Lee Elbaz, who has been under house arrest at her aunt’s house in San Francisco since September 2017, wants less restrictive conditions. On Monday, June 25, 2018, the defense counsel addressed the Maryland District Court, asking for a modification of the conditions of release of Elbaz.

To prepare for trial and the motions hearing, defense counsel says he needs to work closely with Ms Elbaz to understand the underlying facts and prepare a defense strategy. According to him, “the defense will need Ms Elbaz’s ongoing assistance in reviewing nearly 1.5 million pages of emails and other documents that the government has produced to date”. The defense counsel believes that, at a minimum, Elbaz should start dedicating at least three days a week to meeting with defense counsel and/or reviewing documents to assist in her defense. Let’s put this request into a context: currently, Lee Elbaz gets to spend about an hour outside of the house.

Furthermore, the defense counsel argues that these meetings and document review sessions should occur at defense counsel’s offices in downtown San Francisco, which is about six miles (or about 40 minutes away by public transportation) from Elbaz’s residence.

The rest of the requests depict the circumstances of Elbaz’s daily life – for instance, the strain on her eyes because of having to read all the documents related to the case against her. Under the protective order, Elbaz is not permitted to have hard copies of documents, and, hence, she may only review electronic documents, which, according to the defense counsel, “takes a toll on her eyes and taxes her mentally”.

Furthermore, Elbaz only has access to a personal laptop and a personal email account, which “she prefers not to use for her document review”, in light of the sensitivity and confidentiality of the materials, and the lack of stability of her internet connection. (Who does not have Internet issues now and then? – Ed.)

More extraordinary is the request for Elbaz to attend these meetings unaccompanied. There is nothing astonishing that Ankush Khardori, counsel for the government, has stated that the government opposes allowing Ms. Elbaz to travel to counsel’s downtown San Francisco office unaccompanied by her aunt.

The defense counsel hints at the mental health status of Elbaz.

“Being detained in a foreign country where she has no friends and limited interactions with the outside community has placed an immense strain on Ms. Elbaz’s mental health and well-being. The Pretrial Services Office informed Ms. Elbaz that they can provide Ms. Elbaz with access to mental health services, but require a court order”.

Therefore, Ms Elbaz should be released pending trial under the “least restrictive” conditions, the defense argues.

Lee Elbaz – the former CEO of Israel-based Yukom Communications, a purported binary options sales and marketing company operating on behalf of BinaryBook and BigOption, faces a prison sentence and a hefty fine if she is found guilty of fraud.

From in or about May 2014 through in or about June 2017, Elbaz was an employee of Yukom and served in various capacities, including as Chief Executive Officer from at least in or about March 2016 through December 2016. The indictment alleges that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors but that, in fact, the owners of BinaryBook and BigOption profited when investors lost money.

In addition, the defendant misrepresented the suitability of and expected return on investments through BinaryBook and BigOption and provided investors with false names and qualifications. Lee Elbaz was also known as Lena Green.

Read this next


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products. 

Industry News

Interactive Brokers pays unmatched interest up to USD 4.33% on cash balances over $10,000

For clients of Interactive Brokers, interest accrues daily, and payments are posted on a monthly basis. Interactive Brokers’ cash management is integrated into client broker accounts, making it simple to earn interest and borrow at the lowest rates without transferring cash.

Retail FX

FP Markets adds cTrader to roster of trading platforms that include MT4, MT5, Iress

“Our market share swings towards the more sophisticated segment of traders and we have been inundated with requests for an additional platform with more institutional-style characteristics. The addition of the cTrader trading platform offering allows our clients the choice to further shape their trading experience with us.”

Digital Assets

SEC mulls lawsuit against Coinbase’s staking and spot trading

Shares in Coinbase fell 15 percent after the US Securities and Exchange Commission threatened a potential enforcement action against the crypto exchange over certain products.

Digital Assets

Kraken halts ACH transactions amid banking crisis

San Francisco-based cryptocurrency exchange Kraken says it will no longer process Automated Clearing House (ACH) following the failure of its payments partner, Silvergate Bank.

Digital Assets

French influencers face two years in jail for promoting crypto products

France’s National Assembly’s Economics Committee voted in favor of a law that bans social media influencers from touting risky financial services, including cryptocurrencies.


Exberry’s Guy Melamed on paradigm shift with cloud-native exchanges at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Guy Melamed about Exberry’s cloud-native exchange SaaS platform certified by AWS to bring about a paradigm shift in the industry at a time of cybersecurity concerns.