🚨 MAJOR FINANCIAL FRAUD TAKEDOWN
Fraud Operation: Binary Options Investment Scheme
Criminal Organization: Yukom Communications (Israel-based)
Total Losses: $140 million USD
Victim Count: Thousands of investors worldwide
Fake Platforms: BinaryBook, BigOption
Defendants: 15 charged, multiple arrests made
Risk Level: ⭐⭐⭐⭐⭐ MAXIMUM DANGER
📋 The Criminal Enterprise
Primary Defendants
Yakov Cohen (Age 27)
- Role: Company owner with ownership interests
- Status: Facing wire fraud conspiracy charges
- Maximum Sentence: 5 years federal prison
Yosef Herzog (Age 54)
- Role: Co-owner of Yukom Communications
- Background: Israeli resident with extensive fraud experience
- Charges: Wire fraud and conspiracy
Lee Elbaz (Former CEO)
- Status: CONVICTED after three-week jury trial
- Previous Case: Separate prosecution completed
- Sentence: Significant federal prison time
Operation Structure
- Front Company: Yukom Communications (Israel)
- Fake Platforms: BinaryBook and BigOption websites
- Employee Network: 15+ sales representatives and managers
- Geographic Scope: Global operations targeting US investors
🎯 The Binary Options Fraud Scheme
What Binary Options Actually Are
- Legitimate Product: Real binary options exist on regulated exchanges
- Simple Concept: Bet on whether asset price goes up or down
- Regulated Markets: Legitimate platforms match opposing investors
- Commission Model: Real exchanges make money from commissions only
How the Scam Worked
- Fake Exchange: No real trading, scammers took opposite side of all bets
- Rigged Platform: Could manipulate prices and trading conditions
- House Always Wins: Scammers only profited when investors lost
- Fake Bonuses: Complex terms that prevented withdrawals
😢 Victim Impact Stories
Case #1: Retired Couple’s Nest Egg
- Total Loss: $185,000 (entire retirement savings)
- Duration: 14-month relationship with “account manager”
- Story: “They convinced us to roll over our 401k into their ‘safe’ binary options. We lost everything we saved for 40 years.”
Case #2: Small Business Owner
- Total Loss: $95,000 (business expansion funds)
- Platform: BinaryBook
- Impact: “I was going to expand my restaurant. Instead, I had to close it. My employees lost their jobs because I trusted these thieves.”
⚠️ Binary Options Scam Warning Signs
Platform Red Flags
- Unregulated Operations: Not registered with CFTC or SEC
- Offshore Locations: Based in countries with weak regulation
- Bonus Restrictions: Complex terms that prevent withdrawals
- No Phone Support: Only chat or email customer service
- Withdrawal Problems: Difficult or impossible to withdraw funds
🛡️ Protection Against Binary Options Scams
Before Investing
- Regulatory Verification: Check CFTC and SEC databases
- Company Research: Verify business registration and licenses
- Background Checks: Research company executives and history
- Independent Reviews: Read unbiased reviews from multiple sources
Remember: If someone cold-calls you about trading opportunities, hang up immediately.
This article is based on Department of Justice press releases, court documents, and verified victim testimonies.