Lee Elbaz, 36, of Israel, was charged with one count of conspiracy to commit wire fraud and three counts of wire fraud in connection with a scheme to defraud investors in the United States and worldwide in financial instruments known as ‘binary options.’
The indictment alleges that Yukom Communications, an Israel-based company where Elbaz served as CEO, provided ‘retention’ services for two websites: BinaryBook and BigOption. These websites were used to promote and market purported binary options, which were fraudulently sold and marketed.
According to the indictment, Elbaz and her co-conspirators misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors. However, the owners of BinaryBook and BigOption profited when investors lost money.
The indictment further alleges that Elbaz and her co-conspirators misrepresented the suitability of and expected return on investments through BinaryBook and BigOption. They also provided investors with false names and qualifications and falsely claimed to be working from London.
Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of ‘bonuses,’ ‘risk-free trades,’ and ‘insured trades.’ These supposed benefits were used deceptively to harm investors, according to the indictment.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Washington Field Office. Trial Attorneys Ankush Khardori and Tracee Plowell of the Criminal Division’s Fraud Section are prosecuting the case.
In order to report this crime, individuals who believe that they may be victims should visit the Fraud Section’s Victim Witness website for more information.
Defendant: Lee Elbaz
Criminal Charges: One count of conspiracy to commit wire fraud and three counts of wire fraud
City and State: Baltimore, Maryland
DATE: March 22, 2018
Status: Charged
Key Facts
- State: Washington
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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