Lee Elbaz, accused of binary options fraud, renews request for immunity for Yossi Herzog

Maria Nikolova

Elbaz, also known as Lena Green, insists the US Government overreached in taking actions that made Yossi Herzog unwilling to testify in her case.

Lee Elbaz, who stands accused of fraud in the United States, has reiterated her request for immunity to be granted to Yossi Herzog, the owner of Israeli-based Yukom Communications where Elbaz also worked.

In a document filed with the Maryland District Court on July 2, 2019, Elbaz argues that immunity has to be granted to Herzog and three other witnesses – Elad Bigelman, Nissim Alfasi, and Chanan Tabarko, she wants to depose.

On June 11, 2019, about one week before the scheduled depositions and approximately one month before trial, the Government contacted counsel for Mr. Herzog, Mr. Bigelman, and Mr. Alfasi and informed them that all three individuals had been charged in the United States in a sealed indictment. On the afternoon of June 12, 2019, the day following the calls by the Government to counsel for the witness apprising them of the sealed charges, the district court partially unsealed the indictment against Mr. Herzog, Mr. Bigelman, and Mr. Alfasi, making the charges against them publicly available for the first time.

On June 14, 2019, counsel for Mr. Herzog, Mr. Bigelman, Mr. Alfasi, and Mr. Tabarko informed counsel that their clients are no longer willing to appear voluntarily for their scheduled depositions without immunity.

In the document filed on July 2, 2019, Elbaz argues that immunity for defense witnesses is an appropriate remedy for misconduct or overreaching. She says that overreaching is an apt description of the Government’s communications with counsel for the deponents. According to Elbaz, by purportedly seeking to protect rights that were not at issue, the Government overreached in taking actions that resulted in the deponents no longer being willing to provide exculpatory testimony without immunity.

The Government contends that its actions were taken in consultation with Judge Xinis. But Elbaz says that none of the newly unsealed pleadings filed by the Government with Judge Xinis or any order issued by her, however, authorized the Government to reveal the existence of pending charges while they were still under seal; nor did they dictate the timing or content of the Government’s communications. In sum, according to the defendant, the path chosen by the Government rendered the deponents unavailable. She insists that this can be remedied by providing them immunity or, alternatively, by issuing a missing witness instruction.

The criminal proceedings against Lee Elbaz continue at the Maryland District Court, with the trial set to begin later in July.

Read this next


CloudMargin’s Stuart Connolly on how to manage collateral amid high rates at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Stuart Connolly about CloudMargin’s SaaS platform, said to be the only cloud-native collateral and margin management system in the industry, at a time of stress due to rising interest rates.


Baton Systems’ Alex Knight on solving post-trade with DLT at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Alex Knight about Baton Systems’ about rising settlement fails, collateral management, and the profile of DLT beyond cryptocurrencies.

Industry News

Wise claims 92% of banks hide or inflate FX fees despite Cross-Border Payments Regulation 2

“Banks continue to exploit loopholes in EU regulation to mislead their customers and overcharge them through fees hidden in inflated exchange rates.”

Industry News

Goliath Partners opens Miami headquarters to recruit C++ developers for fintech and trading

I’m extremely excited to be pursuing this venture and having the backing of such knowledgeable entrepreneurs who have seen success time and time again. We’ve already made brilliant headway working with leading investment houses and trading exchanges. It’s just the start, but we’re already making a huge difference with our work.”

Industry News

IOSCO calls for cooperation against cross-border scams, greenwashing, misconduct, and fraud

“Regulators need effective resources, practices, tools, and techniques to promote consumer protection and market integrity, which is supported through participation in critical multilateral forums such as IOSCO.”

Institutional FX

Archax rolls out tokenization engine as LawtechUK confirms legal standing of tokens

“As the UK’s first FCA regulated digital securities exchange, we are now building on this to pave the way to make traditional assets interoperate with Web 3.0.”


Broadridge migrates bond e-trading platform LTX to AWS

“LTX is committed to offering innovative e-trading technology that facilitates transparency and liquidity discovery. By migrating to AWS, LTX can leverage the scalability of the cloud to continue to deliver enhanced data and execution capabilities to our clients.”

Executive Moves

CME Group taps Tim McCourt as Head of Financial & OTC Products as Sean Tully retires

“We appreciate the leadership Sean provided over the past decade for our financial products businesses, which included the successful migration to SOFR derivatives that now serve as the leading tool for hedging short-term interest rates. We are fortunate to have Tim McCourt, who has extensive experience across financial products, to lead these important business lines that allow our clients to manage risk in key asset classes.”

Industry News

Euronext’s ELITE launches WTC Lisboa academy to promote Portuguese companies

“The launch of this project helps shape our aligned objective of supporting entrepreneurs and executives in upskilling and empowering their strategies and business opportunities. For WTC Lisboa, this represents a milestone in its strategy of promoting the internationalisation of the Portuguese economy.”