On August 6, 2019, the Israeli citizen Lee Elbaz was found guilty of fraud with binary options by a U.S. jury. In total, retail investors are said to have been harmed by far more than $100 million. Sentencing is scheduled for Dec. 9, 2019, before U.S. District Judge Theodore D. Chuang of the District of Maryland, who presided over the trial. Now, the former CEO of Israeli Yukom Communications Ltd wants to be released pending her sentencing. She filed a respective Motion with the Court.
$100 Million fraud proceeds still not located
Lee Elbaz is suggesting that she post an additional bond secured by collateral located in Israel. The U.S. Government argues that pledging an additional $1.189 million in collateral would not alter the analysis in this case, particularly where the government has still not located over $100 million in fraud proceeds.
The U.S. Government, however, has filed the brief in opposition to Elbaz’s Motion. The prosecutors argue that Elbaz’s request for release pending sentencing should be denied given the fact that she faces a potential sentence of life imprisonment:
The defendant is a foreign national with virtually no ties to the United States who has been convicted of orchestrating and directing a scheme to defraud victims worldwide out of over $100million. The defendant faces a potential sentence of life imprisonment under the Guidelines. She not only has the manner and means to flee, she also has substantial motive to do so and thus poses a substantial risk of flight.The defendant has not carried her burden of showing by clear and convincing evidence that she “is not likely to flee” if released and cannot do so. The Court correctly determined that the defendant should be detained pending sentencing and the defendant’s motion should be denied.
U.S. Goverment arguments Criminal Action No. TDC-18-157
According to the U.S. prosecutors, Elbaz has a strong motive to flee and her lack of flight to date,
Apparently, Elbaz has access to the means—financial and otherwise—to flee the United States. She worked in Israel and Mauritius, and likely has contacts, namely her co-conspirators, abroad who could support Elbaz in her flight, the prosecutors argue.
Given the defendant’s motive, means, and her history of deceiving the authorities and this Court when it furthers her interests, the defendant’s request for release pending sentencing should be denied.
U.S. Goverment arguments Criminal Action No. TDC-18-157
More trials scheduled
Lee Elbaz was only the prelude to further trials against the beneficial owners of the
