Since 2019, the Israeli binary options and broker scam operator Yukom with its scam brands BigOption, BinaryBook, and BinaryOnline are dealt with before different US courts. The US Government has brought criminal charges against Yukom’s owners and managers. The US Commodity Futures Trading Commission (CFTC) filed a complaint against the Yukom scheme and its perpetrators in August 2019.
A total of more than 20 people are covered by the various charges and complaints. A total of six Israeli persons have already been sentenced to prison, fines, and restitution payments. Yukom is considered the reference case for the prosecution of the gigantic binary options fraud industry between 2009 and 2019 which was rooted in Israel. The fraud has spread all over the world like a plague with hundreds of thousands of victims.
While former CEO Lee Elbaz has been arrested in the United States, convicted by a jury and sentenced to 22 years in prison and a $28 million restitution payment for investment fraud, beneficial owners Yossi Herzog and Kobi Cohen are on the run. According to the US authorities, they could not be served with the US government’s indictment or the CFTC’s complaint.
According to a report by FinanceFeeds, the CFTC, with the support of regulators in various jurisdictions, has unsuccessfully searched for Yossi Herzog. He is also not supposed to be in Israel at the moment. As reported by FinTelegram several times, Herzog and his companies were involved in scams on all continents. A special focus was Australia.
The CFTC has been able to serve five of the nine defendants, FinanceFeed reported. On April 20, 2020, the US Judge Andrea R. Wood signed an order granting the CFTC’s motion for to serve the complaint to some of the Defendants by alternate means. In particular, the CFTC is granted leave to serve the scheme’s ultimate beneficial owners
- Kobi Cohen,
- Yossig Herzog, and
- Shalom Peretz
by alternative service by: (1) sending the Summons and Complaint by ordinary mail to their last known addresses; (2) sending the Summons and Complaint to email addresses that they have used in the past; and (3) publishing notice of the Summons and Complaint in the Times of Israel, with the notice appearing online on the publication’s homepage for a week and continuing to be available in its back pages for at least six months.