Court requires more info ahead of sentencing of binary options fraudster Lee Elbaz

Maria Nikolova

The parties in the criminal proceedings targeting the former CEO of Yukom Communications are ordered to meet and confer about the loss amount for which Elbaz will be held liable.

As FinanceFeeds has reported, the sentencing of binary options fraudster Lee Elbaz has been rescheduled for December 19, 2019. Ahead of the sentencing, the Court is seeking more information from the parties in these criminal proceedings.

On December 9, 2019, Judge Theodore D. Chuang of the Maryland District Court, issued an order regarding the additional information needed. The Judge explains that, having reviewed the parties’ sentencing memoranda, the Court requires additional information in advance of the sentencing hearing.

The parties are ordered to meet and confer and submit a joint calculation of the loss amount based on the following assumptions:

  • The loss may be calculated from the Spot Option data using the overall net losses for all clients.
  • The loss is limited to activities occurring on or after the date that Lee Elbaz began employment at Yukom in May 2014.
  • The loss includes activities involving US victims and foreign victims.
  • The loss includes all activities of all retention agents of Yukom, Numaris, and Linkopia, whether or not specifically found at trial to be members of the conspiracy, but does not include the activities of other companies engaged in binary options fraud.

The Court requires that the calculation includes summary charts and other relevant supporting documentation. If the parties cannot agree on the calculation, the submission is set to identify areas of disagreement and provide each party’s proposed calculation.

Documents filed earlier by the Department of Justice (DOJ) have indicated that the US Government will hold Elbaz jointly and severally liable for the entire restitution and loss figure of $140,318,619.

In August 2019, Elbaz was convicted of conspiracy to commit wire fraud and three substantive counts of wire fraud. Each count implies a maximum sentence of 20 years in prison.

The government has estimated that Elbaz’s advisory sentence will be life imprisonment, which reflects not only the substantial losses caused by her scheme but also enhancements for her role as a leader of the scheme, using of sophisticated means to defraud investors, causing substantial financial hardship to victims, and targeting vulnerable victims.

Between May 2014 and June 2017, Elbaz orchestrated a scheme to defraud tens of thousands of binary options clients out of over $100 million. As a manager and CEO of Yukom Communications, Elbaz was responsible for hiring, training, and overseeing dozens of employees. As the evidence at trial showed, the defendant trained her employees and co-conspirators to lie to clients about, among other things: whether investors made money in binary options; the nature and safety of “investments” in binary options; gains and rates of return clients could expect to receive; the alignment of financial interests between Yukom and its clients; the education, credentials, and experience of the defendant and her employees; and whether clients could withdraw funds from their accounts. At the defendant’s direction, her employees lied to clients and used other fraudulent tactics to convince clients to send money and to prevent clients from withdrawing their funds.

Read this next

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.