Yehuda Belsky, also known as “Jay Bell,” the operator of the illegal binary options scheme Y Trading, pleaded guilty to one count each of securities fraud, failure to register as a commodities trading advisor, and misappropriation of customer funds. On September 26, 2018, the indictment was unsealed and Belsky was arrested the very same day and later released on bail.
The plea was entered before United States District Court Judge Allyne R. Ross. The respective United States DoJ press release, Belsky faces up to 40 years in prison, restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million.
In 2008, Belsky was permanently barred by the U.S. CFTC from trading in commodity futures transactions and options. Nevertheless, from March 2014 to October 2018, Belsky presented himself to potential investors as experienced securities and commodities trader. He promised his victims that he would invest their money by trading securities or binary options. Instead of investing the clients’ funds Belsky misappropriated the money for his personal use and to reimburse investors who had demanded repayment (withdrawal).
The Season of Binary Options Fraud in Court Belsky served as a foreshadowing of the upcoming litigation season centered on binary options scams. Several court appointments for the Israeli Yukom Communications binary options fraud involving Lee Elbaz and Yossi Herzog’s management are scheduled for the coming weeks. Five of the 18 people charged have already pleaded guilty. The U.S. government apparently plans to apply for draconian and deterrent punishments for the accused.