A few days ago, Israeli citizen Sabrina Elofer was sentenced to six months of house arrest by U.S. District Judge Paula Xinis in connection with the vast Israeli binary options fraud scheme Yukom Communications. As part of her settlement, Elofer has also agreed to pay more than $2.9 million in restitution. Binary options were banned in most regulatory regimes in 2017, but fraud schemes will keep the courts busy for longer.
The Yukom Communications Fraud
Yukom Communications was a major player in the fraudulent binary options industry, alongside GreyMountain Management (GMM) operated by the Cartu brothers. This industry, originating in Israel around 2010, quickly became a global fraudulent enterprise, defrauding hundreds of thousands of customers worldwide of billions of dollars until the schemes were banned.
Key Figures and Operations
- Founders: Yukom was founded and controlled by Yosef “Yossi” Herzog and Yakov “Kobi” Cohen.
- CEO: Lee Elbaz, responsible for the boiler rooms.
- Brands: Operated several brands, Yossi including BinaryBook and BigOption.
Legal Actions
- Yosef “Yossi” Herzog and Yakov “Kobi” Cohen: Indicted but currently on the run.
- Lee Elbaz: Arrested in September 2017, indicted in March 2018, convicted in 2019, currently serving a 22-year prison sentence and ordered to pay USD 28 million in damages.
Sabrina Elofer’s Involvement
Sabrina Elofer, also known as Mila Morales in client interactions, was an account executive for BinaryBook from October 2015 to at least November 2016. At her re-sentencing hearing on February 2, 2024, Elofer pleaded guilty to conspiracy to commit wire fraud. On June 28, 2024, Judge Xinis sentenced her to six months of house arrest.
Elofer faced a potential sentence of 51 to 63 months based on sentencing guidelines. Her defense attorney, Todd Spodek, secured a significantly reduced sentence of six months of home detention, which was seen as a major victory.
Yukom Scheme Sentencing Overview
The following table summarizes the sentencing details of various Yukom Communications employees and directors:
| Name | Sentencing Date | Sentence | Restitution |
|---|---|---|---|
| Sabrina Elofer | June 28, 2024 | 6 months house arrest | $2,900,000 |
| Lee Elbaz | 2019 | 22 years imprisonment | $28,000,000 |
| Liora Welles | September 20, 2019 | 14 months imprisonment | $2,395,310 |
| Yair Hadar | September 23, 2019 | 8 months imprisonment | $1,200,000 |
| Lissa Mel | August 2018 | 12 months imprisonment | $288,024 |
| Shira Uzan | November 21, 2019 | 4 months imprisonment, 3 years supervised release | $1,819,595 |
| Afik Tori | January 2, 2024 | 20 months imprisonment, 3 years supervised release | $3,580,836 |
| Nissim Alfasi | November 3, 2023 | 18 months imprisonment, 3 years supervised release | $4,679,527 |
| Ori Maymon | October 30, 2023 | 36 months imprisonment, 3 years supervised release | $1,899,074 |
| Gilad Mazugi | October 20, 2023 | 10 months imprisonment, 3 years supervised release | $1,531,341 |
| Elad Bigelman | October 26, 2022 | 36 months imprisonment, 3 years supervised release | $3,766,449 (jointly with Elbaz) |
| Yousef Bishara | January 22, 2021 | 7 months imprisonment, 3 years supervised release | $1,130,488 |
| Oron Montgomery | Sentencing on July 19, 2024 | Pleaded guilty to conspiracy to commit fraud | TBD |
Preliminary Conclusion
The sentencing of Sabrina Elofer marks another milestone in the ongoing legal proceedings related to the Yukom Communications binary options scam. This case highlights the widespread impact of fraudulent binary options schemes and the continued efforts of legal authorities to bring those responsible to justice.
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