DOJ to use alternative methods for binary options fraud victims

The United States Department of Justice has been given an approval to search for new methods, in order to quickly notify victims of fraudulent binary options schemes. The “green light” was given by Theodore D.Chuang of the Maryland District Court. The victims of fraudulent binary options schemes were mostly connected to Lee Elbaz, the former CEO of the Israeli Yukom Communications.

The notification will be published on a website that is maintained by the Department of Justice. If you are not already aware Yukom Communications, was connected to massive Binary options scams that also involved US citizens. Therefore on Friday, January 18th, 2019, the Judge signed an Order, that gave the Government the responsibility to notify the victims as mentioned above.

Binary Options and bad history

You are probably already aware of the Binary options and CFD restrictions that ESMA has introduced to the EU market. However, not many people know as to why these trading methods needed to be completely banned, and here are the reasons. Lissa Mel, who was a co-conspirator with Lee Elbaz, was charged for conspiring a wire fraud. This meant that she conducted illegal marketing and sale of Binary options, which she masked with deceptive bonuses and the promise of high gains on these “investments”. Her case is one of many, that ESMA had to study.

Marketing & Sale of Binary Options

Yukom Communications was not directly involved in defrauding investors from their money, but they did have a big part in it. According to the reports, when Elbaz was the CEO of the company, they provided Binary Options marketing, traffic and customer “retention” services to two Binary Options “brokers”, BinaryBook and BigOption. Which were clearly scams, and Elbaz knew it. Therefore this makes her equally guilty as the owners of BinaryBook and BigOption.

Binary Options are a trading method that seems like it’s 50/50 when a trader is “investing”. However, it has been proven many times that the odds are weighed heavily against the investor. Even if the odds were fair, in most cases about 99% of the Binary Options brokers turned out to be scams back in the day when it was popular. Therefore in this day and age, every single broker tries to avoid the whole thing. The scams were the primary reason why ESMA cracked down on Binaries and there is absolutely no reason why they would absolve it now.