An interesting fact has come to light in an Israeli court regarding the holding and operations of a binary options brand. The owner of a troubled real estate firm, Adama, told the court that the firm should be able to avoid bankruptcy due to the earnings of a media company providing telemarketing services to an offshore binary options brand.
According to Adama’s owner Oren Kobi, Log Trading Capital, which operates the brand Benedict Morris Binary Option (BMBoption), registered in the Caribbean island nation of Dominica, has been providing an estimated cashflow of one million shekels in recent months.
How the FX Industry Can Benefit from Outsourced ITGo to article >>
Adama is one of several real estate firms that has popped up in Israel in recent years marketing agricultural lands to retail investors. Real estate prices have gone up considerably in Israel since 2007, making the allure of getting in on the action too strong for people that little understand how development really works in the country.
These firms sell dreams in the form of land parcels that might be worth a fortune one day. They buy agricultural land priced accordingly, and pass it off to investors in small lots with a massive markup. They usually display marketing material showing imaginary residential neighborhoods speaking about how the authorities are just about to re-categorize the land and sometimes use high pressure sales tactics.
With such a business model, Adama should be just printing money and never get to court for failing to pay its employees or having to resort to binary options investments to cover its operation costs. While what really happened might eventually be unearthed in the legal process, some are already pointing to the young owner of the firm buying luxury cars and houses as well as diverting its funds to other ventures as the alleged source of the cashflow problems.