The Commodity Futures Trading Commission (CFTC) announced on Monday that it has issued three orders which both file and simultaneously settle charges against three individuals involved in the Israeli Yukom Communications $145 million binary options investment scam.
The three individuals are Liora Welles of California, Yair Hadar of Florida, and Shira Uzan of California. These individuals are among those charged by the CFTC with operating an illegal and fraudulent global retail “binary options” trading enterprise that targeted and victimized US residents.
In the orders, the US regulator has imposed sanctions against the individuals. These include permanent trading bans and prohibitions on seeking future registration with the CFTC. Furthermore, the orders require the respondents to “cease and desist” from violating the Commodity Exchange Act and Commission regulations as charged.
“Each respondent has entered into a formal cooperation agreement with the CFTC’s Division of Enforcement to provide information and testify in the Yukom litigation,” the statement from the regulator said.
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Former Yukom employees sentenced to prison
The charges from the CFTC follow on from both Welles and Hadar being sentenced to prison time. As Finance Magnates reported, Welles was sentenced to 14 months imprisonment and ordered to pay restitution of $2,395,310 in customer losses.
Hadar, on the other hand, was given a shorter prison sentence of eight months. He, too, was ordered to pay restitution of $1,200,000. Uzan is scheduled to be sentenced this month on the 24th of October.
“The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers to ensure wrongdoers are held accountable,” the regulator said.
On Monday, the commodities regulator thanked the Securities and Exchange Commission (SEC) for their assistance, as well as Australian regulator ASIC (Australian Securities and Investments Commission), the Financial Supervision Commission of Bulgaria, the Central Bank of Hungary, and the Israel Securities Authority.