US Capitol riot prompts another delay in binary options fraudster Lee Elbaz case
The violent attack at the U.S. Capitol on January 6, 2021, has had heavy consequences in social and political terms. Some of the consequences, such as the freezing of political donations by certain companies, appear to be expected. Other consequences are unexpected, as illustrated by the latest developments in the case brought by binary options fraudster Lee Elbaz who appeals from her prison sentence.
It turns out that the Department of Justice (DOJ) will be delaying the case again, as it is busy dealing with the aftermath of the Capitol riot.
Let’s recall that, in this appeal case, Elbaz, the former CEO of Yukom Communications, seeks to vacate her sentence of 240 months in prison.
According to the evidence presented at trial, Elbaz and her co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The evidence showed that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money.
The fraudulent scheme led investors to purchase more than $100 million in binary options.
Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors.
The case has been delayed several times already. The preceding delay was a result of a DOJ’s motion to postpone the filing of its brief. Now, the DOJ has requested another 30-day extension.
The government attorney assigned to this case has not been able to focus exclusively on the Elbaz case. The counsel was detailed from the Department of Justice’s Criminal Division to the United States Attorney’s Office for the District of Columbia to focus on prosecuting cases related to the riot at the United States Capitol on January 6, 2021. In addition to handling individual cases associated with the riot, undersigned counsel trains prosecutors and consults on other cases to determine which charges, if any, the government should pursue. Work on the Capitol riot cases has required – and will continue to require- significant attention, the Government explains.
The Court has agreed with the Government, which would make the new due date for submitting the DOJ’s brief in response to Lee Elbaz’s claims March 10, 2021.