Binary Options Leader Receives Order To Return $7 Million
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A district court in the United States has set a consent order that demands Yakov Cohen return the $7 million he wrongfully obtained. This money came from participating in fake binary options schemes associated with the brands BinaryBook, BigOption, and BinaryOnline.
On September 9th, the court issued the order following complaints from the Commodity Futures Trading Commission (CFTC) in 2019 against Cohen and other individuals and organizations.
The Group Operated From March 2014 To September 2017
In addition to Cohen, the case also involves three individuals namely, Yossi Herzog, Shalom Peretz, and Lee Elbaz, and four companies which include, Zolarex Ltd. (BinaryOnline), WSB Investments Ltd. (BinaryBook), Wirestech Limited (BigOption), Linkopia Mauritius Ltd., and Yukom Communications Ltd.
These companies operated in the Marshall Islands, Mauritius, the UK, Israel, and other offshore areas, and they targeted investors in the US and abroad. While Cohen was asked to return the money he illegally got, the court has not yet decided the fate of the other co-defendants.
The CFTC’s complaint states that the group operated from March 2014 to September 2017, handling binary options trading via the three brands. The regulator discovered that the defendants did not reveal that they earned money from their customers’ losses.
The defendants claimed their binary options were genuine transactions influenced by market conditions. However, the regulator argued that these were just manipulated book entries created by the defendants.
Defendants Lied About Payment Methods And Employee Identities
The lawsuit disclosed that the defendants provided misleading information about financial expertise, payment basis, physical locations, and the identity of employees and agents.
Claims of keeping customer funds secure were false, as money was blended with personal funds and transferred through offshore accounts, including those under Cohen’s control.
Cohen received a minimum of $7 million from the deceptive binary options trading schemes. Besides the CFTC’s actions, Cohen was also charged with wire fraud and conspiracy to commit wire fraud for running the binary options schemes.
Last month, he admitted guilt and was sentenced to 66 months in prison and a $7 million fine, which will be given to the victims of the schemes.
Elbaz was found guilty in 2020 and given a 22-year prison sentence. According to the FBI, the Yukom brands controlled by Elbaz defrauded investors of $145 million from 2016 to 2017, with only $20 million repaid to the victims during that period.
