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.

Read this next

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”

Digital Assets

FINMA-regulated crypto bank SEBA Bank rebrands to AMINA

“As we look forward to 2024, our ambition is to accelerate the growth of our strategic hubs in Switzerland, Hong Kong, and Abu Dhabi, and to continue our global expansion, building on all the successes we have laid down over the past years.”

<