On October 9, 2019, the U.S. Securities and Exchange Commission (SEC) charged the two Israeli citizens Anton Senderov, 35, and Lior Babazara a/k/a Lior Bar, 38, with defrauding more than 2,800 U.S. investors and causing them to lose over $5 million through the binary options scams LBinary and Ivory Option. They operated a boiler room in Israel via their company LianTech Finance Marketing Ltd. Boiler room agents lied to investors about their professional backgrounds and falsely told investors that the brokers earned money only if investors made money. Most investors lost money, with some losing their entire savings.
On August 27, 2020, Judge Rosanna Malouf Peterson of the Washington Eastern District Court signed an order approving a final motion for a consent judgment. As reported by FinanceFeeds, Babazara and Senderov are jointly and severally liable for disgorgement and pre-judgment interest in the amount of $560,773, representing profits gained as a result of their fraudulent conduct. The defendants are also liable for a civil penalty in the amount of $350,000. The order includes permanent injunctions prohibiting the defendants from offering and/or selling binary options, as well as from employing any device, scheme, or artifice to defraud.
Since the ban of binary options in most jurisdictions, law enforcement agencies and courts have been working to tackle this huge fraudulent industry that had its roots in Tel Aviv, Israel. In the Vienna Cybercrime Trials, the Israeli Gal Barak is currently on trial as the suspected principal of a network of binary options scams and boiler rooms. He is accused of investment fraud and money laundering.
In the U.S., the Israeli Lee Elbaz, former CEO of boiler room operator Yukom Communications Ltd, was sentenced to 22 years in prison and $28 million restitution payment.