Israeli Binary Options Brokerage Owner Arrested for Alleged Fraud and Extortion

Israeli police announced to local media organizations this morning that they are bringing the owner of a binary options firm to court today in Tel-Aviv. The 38-year old resident of Tel Aviv is accused of serious fraud, false documentation, threats and extortion. The man's name is not allowed to be made public yet, according to local law.

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The binary options firm owner was arrested yesterday following an undercover investigation lasting months, according to the Israeli police. The investigation was opened after an international client (not an Israeli) complained to the police that the company lost over half a million USD that she had invested.

Finance Magnates will update our readers when more information is made public.

Background

As we exclusively reported back in February of this year, the Israeli police is now taking an active role in the Israeli authorities' efforts to stop local providers who are marketing binary brokers internationally without approval.

Speaking before the Israeli parliament’s State Control Committee (government oversight), a police representative promised to cut the firms' operational abilities. He said that, similar to what happened with online gambling before, the police would just turn to all payment providers and ask them to cut off services to entities that offer binary options.

Furthermore, he said that they will leave no loopholes, and any service providers that continue to deal with binary options companies once they are declared illegal will be dealt with as if they are providing services to criminals.