U.S. Prosecutors Renews Discovery Request In Binary Option Scam Y Trading

The criminal proceedings against alleged binary options fraudster Yehuda Belsky continue at the New York Eastern District Court FinanceFeed reports. The Department of Justice (DOJ) filed a Letter with the Court renewing its requests for discovery in the case.

In September 2018, the U.S. attorneys filed an indictment charging Yehuda BELSKY, also known as “Jay Bell,” the owner of Brooklyn-based Y Trading, LLC, with mail fraud, failure to register as a commodities trading advisor, and misappropriation of customer funds.  Belsky was arrested. BELSKY was the sole shareholder of the New York-based Y Trading.

The U.S. prosecutors now request that BELSKY allow inspection and copying of any documents and data that he plans to introduce as evidence or otherwise rely on at trial. The government also renews its request that BELSKY disclose prior statements of witnesses who will be called by the defendant to testify.

Furthermore, the government renews its request that BELSKY disclose a written summary of testimony that the defendant intends to use as evidence at trial. The summary should describe the opinions of the witnesses, the bases and reasons for the opinions, and the qualification of the witnesses.

In 2008 Belsky was permanently barred by the Commodity Futures Trading Commission (CFTC) from trading in commodity futures transactions and options. Even though BELSKY presented himself as an experienced commodities trader and promised investors he would invest their money in binary options.

BESLY allegedly lured investors by showing them fraudulent monthly account statements that claimed to show his successful history of commodities trading. According to the indictment, BELSKY operated an embezzlement schem using investors’ money for his personal use and to repay other customers who he had fraudulently induced to trust him with investment funds.

If convicted of mail fraud, BELSKY faces a maximum sentence of 20 years’ imprisonment.

2019 – The Year Of Binary Options

We can expect 2019 to be an important year for the legal procedures around the fraudulent binary options scene. Soon the trial against the Israeli Binary Options artist Lee ELBAZ and her 3 co-conspirators should start. The driving force behind the fraudulent binary options prosecutors are the U.S. authorities. In Europe, this process has only recently begun following the prohibition of binary options by the European Securities and Markets Authority (ESMA). The German BaFin is also currently preparing a permanent ban. The FBI estimates that annually up to $10 billion have been stolen by investors via illegal broker sites and binary options.