Lee Elbaz, former binary options executive who repeatedly lied to investors and implemented many unethical practices during her time as Yukom CEO, is under trial in the United States of America. However, her attorney stated in court how Elbaz should not face the consequences for the behavior of her former employees. The prosecution believes how Elbaz instructed the sales team to use unethical methods in convincing clients to trade binary options, which resulted in tens of millions of losses.
Lee Elbaz – Guilty or Not?
Prosecutors claim how Elbaz and her sales representatives lied to investors in order to make them deposit as much money as possible to trade binary options. Her attorney Barry. J Pollack stated in court how Elbaz may be a flawed manager, but that she never authorized her team to use such practices. He indicated that her former employees stroked a deal with the US government, and now they are using Lee Elbaz as the perfect patsy.
However, federal prosecutors see the entire case differently. They stated how Lee Elbaz was the one to implement unethical practices. They lied about their identities and education, claiming to be financial experts, all in order to convince clients their money is in safe hands. The sales representatives also faked data and were convincing users how they had great success with other traders in the past. The US Department of Justice Attorney, Caitlin R. Cottigham explained how Elbaz lived nearby Yukom and was supervising her employees and their actions on a daily basis. When she was arrested, Elbaz told the police how she knows that most of the investments her company did fail.
Still, her lawyer insists on how her intention was never to scam traders and how she insisted on professionalism. Elbaz is only one of 15 defendants in this case. Five of them agreed to cooperate and they pleaded guilty. Also, an email with interesting content popped up. BinaryBook sales representatives would get clear instructions to target
- Retired citizens
- War veterans
- Pension holders
- Social Security recipients
Yukom was an Israeli company that was in charge of sales and marketing of many unregulated binary brokers like BinaryBook and BigOption. According to some estimates, traders lost over $145 million with just those two brokers. The lucky few were able to withdraw less than $50 million. These numbers are regarding US clients only, as it is believed that in the grand worldwide scheme traders lost billions.