Binary Options Trial Case – Lee Elbaz Allowed to Take Depositions of Yossi Herzog

On April 24, 2019, Lee Elbaz filed a Motion with the U.S. court, seeking an Order permitting her to take videotaped depositions in Israel of Yossi Herzog, Elad Bigelman, Nissim Alfasi, and Chanan Tabarko. The US Government opposed Elbaz’s Motion according to FinanceFeeds. On May 15, 2019, Judge Theodore D. Chuang of the Maryland District Court granted Elbaz’s request. The Court’s ruling, however, does not address whether such deposition testimony will be admissible during trial.

The Yukom Case

In March 2018, Lee Elbaz, the former CEO of the Israel-based company, Yukom Communications, was charged in an indictment with one count of conspiracy to commit wire fraud and three counts of wire fraud for her alleged participation in a scheme to defraud investors with binary options. Lee Elbaz was arrested by the FBI in September 2017 for charges of binary options fraud. The indictment alleges that the Israel-based Yukom Communications Ltd provided boiler room services (so-called conversion services and retention services) for two websites, BinaryBook and BigOption. Elbaz allegedly participated from approximately May 2014 through June 2017 in the fraudulent scheme. Yukum was owned and controlled by the Israeli Yossi Herzog. BinaryBook and BigOption have been operated as SpotOption white-label solution. The founder and main shareholder of the Israeli SpotOption is an Israeli known as Pini Peter, whose full name is Pinchas Peterktzishvilly. FBI agents visited the offices of SpotOption in January 2018.

Involved People

• Lee Elbaz (a/k/a “Lena Green”), the former CEO of the Israel-based company, Yukom Communications, was found guilty after a three-week jury trial of one count of conspiracy to commit wire fraud and three counts of wire fraud. Sentencing is scheduled for Dec. 9, 2019 .
• Lissa Mel (a/k/a “Monica Sanders”) worked as boiler room agent for Numaris. She pleaded guilty to one count of conspiracy to commit wire fraud. She was sentenced to a 12-months prison term and a restitution payment of $288,024.
• Austin Smith, (a/k/a “John Ried“) former Vice President of Numaris, a partner of Yukom and founder of Wealth Recovery International pleaded guilty, Sentencing has been scheduled for September 3, 2019.
• Liora Welles (a/k/a “Lindsay Cole” “Lindsay Wells,” and “Lindsay Taylor”) pleaded guilty to one count of conspiracy to commit wire fraud. Sentencing has been scheduled for Sept 20, 2019.
• Shira Uzan (a/k/a “Shira Baror” and “Emily Laski”) pleaded guilty to one count of conspiracy to commit wire fraud charged.  Sentencing has been scheduled for Sept 20, 2019. 
• Yair Hadar (a/k/a “Steven Gold”) pleaded guilty on March 21, 2019. Sentencing has been scheduled for Sept 23, 2019.
• Yossi Herzog, a beneficial owner of the Yukom Scheme, is indicted with binary options fraud. Trial date and details of the indictment are not yet publicly known.
• Kobi Cohen, a beneficial owner of the Yukom Scheme, is indicted with binary options fraud. Trial date and details of the indictment are not yet publicly known.

It is important to keep in mind that criminal charges and indictments contain allegations only and that defendants are presumed innocent until proven guilty and that presumption requires the authorities to take the respective steps to ensure that justice is served.