More than a month after Yukom former CEO Lee Elbaz was found guilty in a $145m binary options fraud scheme, another company executive is now facing charges. According to several news sources, a 28-year-old person a of dual Israeli-French citizenship, and a 44-year-old person with US citizenship were arrested on Saturday by the Hungarian Police.
A source close to the matter told Finance Magnates that the Israeli-French national in custody is allegedly a person named Daniel, who served as the company’s VP Marketing.
According to the Hungarian news outlet Daily News Hungary, the two are suspected of defrauding American investors through the activity of call centers operated in Ukraine and Mauritius.
The investigation and the arrest were coordinated with the Federal Bureau of Investigations (FBI), and the two are facing the possibility of being extradition to the US.
According to another source, if convicted, the two may face 20 years in Jail.
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It is not clear at this point whether the 44-year-old in custody is related to Yukom.
Another link in the chain
The arrest follows the widely publicized conviction of Elbaz, 38, at a District of Maryland court for defrauding US investors as part of a global binary options scheme.
The Israeli national was arrested in 2017 after traveling to New York and was indicted in March 2018 alongside 15 other defendants. Five have pleaded guilty and agreed to cooperate with prosecutors.
Another co-operator of Yukom who was convicted in the US is Lissa Mel. Mel, a 31-year-old Israeli citizen, worked as a sales representative for Yukom brands from July 2015 till November 2016, where she misleadingly referred to herself as a “Senior Broker,” “Account Manager,” or “Chief Analyst.”
In late August, a Maryland state court sentenced her to 12 months in jail and instructed her to pay victims restitution of $288,024.