Israeli Boiler Room CEO Lee Elbaz was found guilty in the Yukom Binary Options Trial and sentenced to The United States Judge, Theodore D. Chuang says Lee Elbaz, the former CEO of the Israeli binary options scam operator Yukom Communications Ltd, was responsible for the targeting of elderly, vulnerable victims in the $140 million fraud. Yukom was in charge of the back office operations for the binary options schemes BigOption and BinaryBook. Elbaz, on the other hand, lashed out at her former bosses, Israelis Yossi Herzog and Kobi Cohen. At least in part, Elbaz’s defensive line worked. The Fraud Culture – Fucking Money-Making Machine
The former boiler room CEO Lee Elbaz, 38, did not receive the 34-year prison sentence that the prosecutors had demanded. Elbaz was given a sentence of 22 years in prison and ordered to make at least $28 million in restitution to the people who had been hurt. The additional 90 days given to the US prosecutors to locate additional victims may result in an increase in the amount of restitution. The judge said that the Yukom binary options scam run by Elbaz had cost a lot of retail investors their savings and livelihoods. Defense attorney Barry Pollack called the sentence “much harsher than it needed to be” and said that he would appeal. However, Lee Elbaz’s US trial revealed the shambolic, barbaric, and disgusting fraud culture of the Israeli binary options era. Under Elbaz’s direction, boiler room agents’ successful fraud actions have been celebrated. We are proud of boiler room agents because they knowingly and knowingly took money from their victims. And earned commissions, rewards, and recognition. Elbaz and other management members have taught and supervised them to be highly effective liars and criminals. To get the money of retail investors, they have scripts that are psychologically optimized. The Culture of Fraud: A Fake Money-Making Machine The former boiler room CEO Lee Elbaz, 38, did not receive the 34-year prison sentence that the prosecutors had demanded. The judge sentenced Elbaz to 22 years in prison and to pay at least $28 million in restitution to the injured parties. The US prosecutors have got additional 90 days to find more victims, which may raise the restitution amount. The judge pointed out that many retail investors had lost their savings and livelihoods with the Yukom binary options scam under Elbaz management.
Barry Pollack, the defense attorney, stated that he would file an appeal and that the sentence was “much harsher than it needed to be.” As a matter of fact, however, the US trial against Lee Elbaz uncovered the shameless, brutal, and disgusting fraud culture of the Israeli binary options era. Under Elbaz’s direction, boiler room agents’ successful fraud actions have been celebrated. Boiler room agents knowingly and wilfully stole money from their client-victims and we’re proud of it. and received recognition, commissions, and rewards. Elbaz and other management members have taught and supervised them to be highly effective liars and criminals. To get the money of retail investors, they have scripts that are psychologically optimized. The Culture of Fraud: A Fake Money-Making Machine The former boiler room CEO Lee Elbaz, 38, did not receive the 34-year prison sentence that the prosecutors had demanded. Elbaz was given a sentence of 22 years in prison and ordered to make at least $28 million in restitution to the people who had been hurt. The additional 90 days given to the US prosecutors to locate additional victims may result in an increase in the amount of restitution. The judge pointed out that many retail investors had lost their savings and livelihoods with the Yukom binary options scam under Elbaz management.
Defense attorney Barry Pollack called the sentence “much harsher than it needed to be” and said that he would appeal. As a matter of fact, however, the US trial against Lee Elbaz uncovered the shameless, brutal, and disgusting fraud culture of the Israeli binary options era. Under Elbaz’s direction, boiler room agents’ successful fraud actions have been celebrated. Boiler room agents knowingly and wilfully stole money from their client-victims and we’re proud of it. And earned commissions, rewards, and recognition. They have been trained and supervised by Elbaz and other management to be highly efficient liars and perpetrators. To get the money of retail investors, they have scripts that are psychologically optimized. “Financial criminals like Elbaz and her co-conspirators are interested in one thing: taking money out of the pockets of unsuspecting investors for their own benefit. The FBI is dedicated to identifying and investigating fraud, no matter where the criminals are located, or how long it takes,” said Assistant Director in Charge Timothy R. Slater (FinanceFeeds, source) According to Nimrod Assif, an Israeli lawyer who has sued several binary options companies on behalf of victims said to The Times of Israel that there have been “hundreds, if not thousands, of Israelis” engaged in pretty much the same conduct for which Lee Elbaz sentenced. Their fate would only be different only because they did not target Americans, or haven’t been caught yet. Assif quite openly blames the shortcomings of the Israeli law enforcement for the development of the binary options fraud industry.
Given the $140 million loss and the thousands of defrauded retail investors the sentencing is fair under US standards. It’s an important sign and definitely a call for action for the European prosecutors. Unfortunately, there are dozens of similar broker scam schemes that damaged tens of thousands of retail investors in the European Union w. In the best interest of investors, these scams must also be investigated and prosecuted. Yukom is an important precedent.
Elfriede Sixt, EFRI principal
The Defense Line
Lee Elbaz‘ line of defense was to reduce her role to a middle manager under the direction of the scheme’s beneficial owners, the Israeli Yossi Herzog and Kobi Cohen. Because the judge did not comply with the prosecutors’ request for a 34-year prison sentence, it appears that it worked to some extent. Yossi Herzog and Kobi Cohen are also faced with an indictment but remain at large. They are said to be in Israel. Whether and when they will be extradited to the United States is currently unknown. Elbaz’s defense strategy has been successful to the point where the court did not grant the public prosecutor’s request for a maximum sentence of 34 years in prison. In this respect, we can now look forward to the outcome of the charges against Herzog and Cohen.
Preliminary Conclusion – The Israeli Default
The US prosecutors and courts are actually doing the job of their Israeli counterparts:
Israeli perpetrators,
who performed their fraud via Israeli companies
from offices in Israel have to be investigated and prosecuted in the United States. That’s nothing short of ridiculous, isn’t it? The same is true for the situation in the European Union.
Israel has painstakingly failed to take action against the epidemic spread of the biggest online investment fraud in history – binary options scams. The proud nation’s judicial system failed and continues to do so despite the many public warnings of their journalists like Simona Weinglass of the Times of Israel and Israeli lawyers.
Israeli perpetrators like Lee Elbaz, Yossi Herzog, Kobi Cohan or Guy Galboiz performed their fraud in plain sight without any consequences. Actually, this raises the question of the liability of Israeli authorities and involved lawyers for the damage of investors worldwide.
If Israeli law enforcement authorities would have done their job in the first place, hundreds of thousands of retail investors worldwide would not be ripped off and defrauded. That’s a fact and the Israeli authorities and courts should actually start to do their job properly. Currently, fraudsters, investment fraudsters, and their intermediaries have safe haven in Israel.