June 26, 2019 | AtoZ Markets - Yehuda Belsky, Y Trading binary options owner has been convicted on up to 40 years in prison restitution for the securities fraud after pleading guilty today.
About Yehuda Belsky to spend 40 years in prison
Y Trading binary options owner has pleaded guilty to securities fraud, one count of failure to register as a commodities trading advisor and one count of misappropriation of customer funds. The plea was entered before United States District Court Judge Allyne R.
Ross at the federal courthouse in Brooklyn. Along with the prison sentence, Yehuda Belsky faces restitution in the full amount of each victim’s losses, forfeiture of $800,000 and a fine of up to $5 million.
Recalling the history of the Y Trading binary options owner case
In 2008, the U.S. Commodity Futures Trading Commission (CFTC) permanently prohibited Yehuda Belsky to trade in commodity futures transactions and binary options. However, six years later he started trading in securities and commodities, again.
According to media reports, from March 2014 to October 2018, the binary options owner Y Trading presented itself to potential investors as an experienced trader in securities and commodities. Belsky addressed his victims under a pseudonym, which, however, was not disclosed.
The scammer promised his victims that he would invest their money by trading in securities or binary options.
However, instead of doing what he promised, Yehuda Belsky illegally appropriated the investments of his victims. He used the funds for personal needs and to pay compensations to investors who demanded payment. In September 2018, the indictment for this case was announced in the Eastern District Court in New York.
Notable, that Yehuda Belsky is not the first person who applied in his fraudulent scheme binary options trading.
The trial of Lee Elbaz, also known as Len Green, formerly the CEO of Yukom Communications, a storage service provider for brands such as BinaryBook, should begin in July.
As the media reports, Lee Elbaz was charged with wire fraud and conspiracy to commit wire fraud. The maximum possible penalty is 20 years and a $250,000 fine per count.
Binary options are banned in most of the European regions
European Securities and Market Authority (ESMA) expects that all European national regulatory authorities are soon to apply the binary options ban and restrict CFD’s.
In addition, the Central Bank of Ireland imposed a ban on binary options and confirmed CFD’s restrictions across the country.
The same initiative toward binary products and CFDs has already been taken in the UK, Holland, Denmark, and Germany. In each aforementioned case, the pan-European regulator noted, that permanent binary options ban and CFD’s restrictions were “justifiable and proportionate.”
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