Washington, D.C. – Three individuals have been charged and settled with the U.S. Commodity Futures Trading Commission (CFTC) for fraudulently soliciting U.S. customers into illegal, off-exchange binary options transactions. The individuals – Liora Welles of California, Yair Hadar of Florida, and Shira Uzan of California – operated through websites using aliases like “BinaryBook” and “BigOption.”
The charges stem from a larger case against Yukom Communications Ltd., an Israeli-based company and associated individuals, accused of running a $103 million fraudulent binary options scheme targeting U.S. residents. The CFTC previously filed charges against Yukom and others in CFTC v. Yukom Comm. Ltd (N.D. Ill.).
Each respondent entered into cooperation agreements with the CFTC, agreeing to provide information and testify in the Yukom litigation. The settlements include permanent trading bans and prohibitions from seeking registration with the CFTC, as well as cease and desist orders.
In parallel criminal proceedings with the Department of Justice, Liora Welles was sentenced on September 20, 2019, to 14 months imprisonment and ordered to pay $2,395,310 in restitution. Yair Hadar received an 8-month prison sentence and was ordered to pay $1,200,000 in restitution on September 23, 2019. Shira Uzan is scheduled for sentencing on October 24, 2019.
The CFTC cautioned that restitution orders do not guarantee victims will recover their losses, as wrongdoers may lack sufficient assets. The agency affirmed its commitment to holding accountable those who defraud commodity customers.
The CFTC acknowledged assistance from the U.S. Securities and Exchange Commission, as well as international regulators including the Australian Securities and Investments Commission, the Financial Supervision Commission of Bulgaria, the Central Bank of Hungary, and the Israel Securities Authority.
Staff members Elizabeth N. Pendleton, Heather Dasso, Stacie Pan, Elizabeth Streit, and Scott Williamson of the CFTC’s Division of Enforcement led the investigation.
The CFTC continues to warn consumers about the dangers of binary options fraud, noting that perpetrators often refuse to credit accounts, deny reimbursements, commit identity theft, and manipulate trading software.
Source: CFTC.gov
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