US authorities cast wider net in fight against binary options fraudsters

Whereas the start of the trial against Lee Elbaz, the former CEO of Yukom Communications – provider of investor “retention” services for BinaryBook and BigOption, approaches, the number of criminal cases related to these proceedings continues to grow.

The United States Department of Justice (DOJ) has published an update concerning Lee Elbaz’s case which continues at the Maryland District Court. Two additional related cases have been filed in the District of Maryland. Both cases are pending before U.S. District Judge Theodore D. Chuang.

Defendant Austin Smith (a/k/a “John Ried”) was charged with one count of conspiracy to commit wire fraud in a criminal information on February 25, 2019. Arraignment has been scheduled for March 14, 2019 at 9:30 am.

Defendant Yair Hadar (a/k/a “Steven Gold”) was charged with one count of conspiracy to commit wire fraud in a criminal information on March 7, 2019. Arraignment has been scheduled for March 21, 2019 at 9:00 am.

FinanceFeeds has obtained Court information about Hadar and Smith.

From in or about November 2014 through in or about August 2016, Hadar worked as a sales representative for BigOption at Yukom.

From in or about August 2015 through in or about January 2016, Smith worked as a sales representative or otherwise supervised BinaryBook representatives at Numaris Communications. The latter was an Israel-based business that provided sales and marketing services, including retention services for BinaryBook. Numaris co-ordinated its work with Yukom. In correspondence and other communications, Smith identified himself as an ‘expert trader’ and ‘senior broker’ for BinaryBook.

As per the charges, Hadar and Smith conspired to commit offenses against the United States, to wit and wire fraud by means of materially false and fraudulent pretenses, representations and promises. It was the purpose of the conspiracy for Hadar and Smith and other representatives of Yukom, Numaris, BinaryBook, BigOption and other entities to obtain maximum deposit from investors and to take steps to ensure that investors lost money in their accounts – thereby making money for themselves and their brands in the process.

There are at least three other cases related to the lawsuit against Lee Elbaz. In one of them, Lissa Mel (a/k/a “Monica Sanders”) has pleaded guilty to one count of conspiracy to commit wire fraud. Sentencing for defendant Mel has been scheduled for June 17, 2019, at 2:00 PM. The case against her continues at the Maryland District Court.

Lissa Mel was charged on November 16, 2018 by criminal information with one count of conspiracy to commit wire fraud. She was previously charged by complaint on September 13, 2018.

Lissa Mel is an Israeli citizen who is alleged to have participated in a conspiracy to commit wire fraud in connection with the sale and marketing of binary options. The conspiracy concerns two binary options brands – BinaryBook and BigOption. There are several types of misrepresentations made by representatives of these “brokers” to investors, including misrepresentations about the suitability of binary options as investments, the deceptive use of “bonuses” and misrepresentations about the names, location and qualification of representatives “assisting” investors. The Government has alleged that this conspiracy resulted in over $80 million in losses to investors.

The criminal complaint against Lissa Mel, aka “Monica Sanders”, alleges she participated in the conspiracy from at least in or around May 2015 through at least May 2016.