Last updated on June 28, 2019
The operator of the illegal binary options scheme Y Trading, Yehuda Belsky
The plea was entered before United States District Court Judge Allyne R. Ross. According to the respective U.S. DoJ press release, Belsky faces up to 40 years in prison, restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million.
In 2008, Belsky was permanently barred by the U.S. CFTC from trading in commodity futures transactions and options. Nevertheless, from March 2014 to October 2018, Belsky presented himself to potential investors as experienced securities and commodities trader. He promised his victims that he would invest their money by trading securities or binary options. Instead of investing the clients’ funds Belsky misappropriated the money for his personal use and to reimburse investors who had demanded repayment (withdrawal).
The Binary Options Fraud Court Season
Belsky was the prelude to the upcoming court season surrounding binary options fraud schemes. In the coming weeks, there are several court appointments for the binary options fraud around the Israeli Yukom Communications and its management around Lee Elbaz and Yossi Herzog. There are 18 people accused, 5 of whom have already pleaded guilty. The U.S. government apparently plans to apply for draconian and deterrent punishments for the accused.