CFTC pushes for entry of default against binary options fraudsters Yossi Herzog and Shalom Peretz - FinanceFeeds

CFTC pushes for entry of default against binary options fraudsters Yossi Herzog and Shalom Peretz

Maria Nikolova

The regulator says that Herzog has failed to appear, plead or otherwise defend within the time allowed, and, therefore, is now in default.

The lawsuit brought by the United States Commodity Futures Trading Commission (CFTC) against a number of entities and individuals involved in a large-scale fraudulent binary options scheme evolving around Israel-based Yukom Communications continues at the Illinois Northern District Court.

On September 17, 2020, CFTC filed a motion with the Court requesting that the clerk of court enter default against Yukom Communications Ltd., Yossi Herzog, and Shalom Peretz for failure to answer, plead, or otherwise defend in a timely manner.

On August 12, 2019, the CFTC filed a Complaint for Injunctive Relief, Civil Monetary Penalties, and Other Equitable Relief against Yukom, Linkopia Mauritius Ltd., Wirestech Limited d/b/a BigOption, WSB Investment Ltd d/b/a BinaryBook, Zolarex Ltd. d/b/a BinaryOnline, Yakov Cohen, Herzog, Lee Elbaz and Peretz and issued summons to each of the Yukom defendants.

The Court previously entered default as to Linkopia, Wirestech, WSB, Zolarex, and Elbaz. Defendant Cohen’s motion to dismiss is currently pending.

Yukom was served with summons and a copy of the Complaint via email and regular mail on June 8, 2020 and via a front page publication in the Times of Israel published for a week commencing May 21, 2020 and for six months thereafter on the back page. An answer to the Complaint from Yukom was due on August 19, 2020, 90 days after publication of the notice through the Times of Israel. Yukom has failed to appear, plead or otherwise defend within the time allowed, and, therefore, is now in default, the CFTC says.

Herzog was served with summons and a copy of the Complaint via email and regular mail on June 8, 2020 and via a front page publication through the Times of Israel for a week commencing May 21, 2020 and for six months thereafter on the back page. An answer to the Complaint from Defendant Herzog was due on August 19, 2020, 90 days after publication of the notice through the Times of Israel, Herzog has failed to appear, plead or otherwise defend within the time allowed, and, therefore, is now in default.

Peretz was served with summons and a copy of the Complaint via email and regular mail on June 8, 2020 and via a front page publication through the Times of Israel for a week commencing May 21, 2020 and for six months thereafter on the back page. An answer to the Complaint from Defendant Peretz was due on August 19, 2020, 90 days after publication of the notice through the Times of Israel. Peretz has failed to appear, plead or otherwise defend within the time allowed, and, therefore, is now in default, the CFTC says.

The Commission now requests that the Clerk of the Court enter default against Defendants Yukom Communications Ltd., Yossi Herzog, and Shalom Peretz.

According to the CFTC’s complaint, from March 2014 through the present, the defendants fraudulently solicited and accepted more than $103 million in connection with their binary options trading scheme. As alleged in the complaint, the defendants have solicited individuals located throughout the U.S. and elsewhere to trade binary options through internet trading websites. The complaint further charges that the defendants have falsely stated that the binary options offered by the five defendant entities are actual transactions subject to objective market conditions when, in fact, they are mere book entries whose outcomes can and have been manipulated to force customer losses.

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