US Govt opposes request by binary options fraudster Lee Elbaz to travel to Israel

Maria Nikolova

The ex-CEO of Yukom Communications wants to pay a visit to her old grandfather but the US Government believes she poses a serious risk of flight.

Lee Elbaz, the former CEO of Yukom Communications, who stands accused of binary options fraud in the US and awaits trial there, is trying to go back to Israel. This becomes clear from the latest documents in her case filed with the Maryland District Court.

Let’s recall that Elbaz was arrested by the FBI in September 2017. The Indictment charges Lee Elbaz with one count of conspiracy to commit wire fraud and three counts of wire fraud. The Indictment alleges that Elbaz participated for over three years (from approximately May 2014 and continuing through approximately June 2017) in a fraudulent scheme involving the sale and marketing of binary options – including as the Chief Executive Officer of Yukom Communications. Yukom was an Israel-based business that provided sales and marketing services, including investor “retention services,” for two internet-based businesses that sold and marketed binary options with the brand names BinaryBook and BigOption.

The latest Court filings reveal Elbaz is trying to go back to Israel. In a motion dated March 29, 2019, Elbaz says she has learned that her 91-year-old grandfather has been hospitalized in Israel and is critically ill. Elbaz moved to amend her conditions of release to permit her to travel to Israel for a short visit accompanied by her third-party custodian, Ms. Limor Elbaz, so that she can say good-bye to her grandfather. Magistrate Judge Sullivan has denied her motion. Now, Elbaz wants the Court to review Magistrate Judge Sullivan’s Order and moves to modify her conditions of release to permit her to travel to Israel to visit her grandfather.

On Monday, April 1, 2019, the US Government submitted its response in opposition to the defendant’s motion. The United States believes that U.S. Magistrate Judge Sullivan correctly concluded that Elbaz poses a serious risk of flight, if permitted to return to Israel.

The Government notes that Elbaz is a foreign national who is pending trial on an indictment charging her with conspiracy to commit wire fraud. The trial is scheduled to commence on July 16, 2019. The United States continues to believe that this defendant poses a serious risk of flight under the Bail Reform Act. If the Defendant is permitted to depart the United States and travel to Israel, there is no guarantee that she will return for trial. Further, Elbaz is a citizen and resident of Israel with limited ties to the United States and the United States cannot use compulsory process to gain her presence in court.

Finally, if Elbaz is permitted to return to Israel and chose to remain there, the United States would have to commence the extradition process in order to return her to the United States for trial. The extradition process from Israel, particularly involving Israeli citizens, is extremely lengthy, the Government explains, and the delay would deprive the public and victims of this conspiracy from a timely and just resolution to this case. In addition, U.S. Probation and Pretrial Services also opposes the modification.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales.