Commodity Futures Trading Commission v. Yukom Communications Ltd., Linkopia Mauritius Ltd., Wirestech Limited d/b/a BigOption, WSB Investment Ltd. d/b/a BinaryBook, Zolarex Ltd. d/b/a BinaryOnline, Yakov Cohen, Yossi Herzog, Lee Elbaz, and Shalom Peretz
Civil Action 1:19-cv-05416, Hon. Andrea R. Wood, District Court Judge
Summons in Civil Case and Notice of Allegations in the Complaint
To: Yukom Communications Ltd. (“Yukom”), Yakov Cohen (“Cohen”), Yossi Herzog (“Herzog”) and Shalom Peretz (“Peretz”)
YOU ARE HEREBY SUMMONED and required to serve on plaintiff’s counsel, Elizabeth N. Pendleton or Elizabeth M. Streit of the Commodity Futures Trading Commission (“CFTC”), 525 W. Monroe Street, Suite 1100, Chicago, IL 60661, U.S.A., an answer to the complaint that was filed against you in the U.S. District Court, District of Illinois, within 30 days from May 21, 2020. If you fail to do so, judgment by default will be taken against you for the relief demanded in the complaint. Any response that you serve on the plaintiff in this action must be filed with the Clerk of the Court for the District Court of Illinois.
THE ALLEGATIONS AGAINST YOU are as follows:
Beginning on or around March 26, 2014, Defendants Yukom, Linkopia Mauritius Ltd. (“Linkopia”), Wirestech Limited d/b/a BigOption (“Wirestech”), WSB Investment Ltd d/b/a BinaryBook (“WSB”), Zolarex Ltd. d/b/a BinaryOnline (“Zolarex”), Cohen, Lee Elbaz (“Elbaz”), Herzog and Peretz (collectively, the “Yukom Defendants”) fraudulently solicited individuals throughout the United States and other countries to enter into illegal, off-exchange transactions in binary options through fictitious entities using the trade names “BigOption,” “BinaryBook,” and “BinaryOnline” (collectively, the “Yukom Brands”) in violation of Sections 2(e), 4c(b), 4d(a)(1), and 6(c)(1) of the Commodity Exchange Act, 7 U.S.C. §§ 2(e), 6c(b), 6d(a)(1), 9(1) (2012), and Commission Regulations 32.2, 32.4, 180.1(a)(1)-(3), 17 C.F.R. §§ 32.2, 32.4, 180.1(a)(1)-(3) (2019). Each of the Yukom Brands is a fictitious entity ultimately under the ownership and control of Cohen and Herzog. The Yukom Defendants operated a global retail binary options enterprise whose employees and agents made material misrepresentations and omissions to induce customers to trade, including misrepresenting the profit potential and fundamental nature of the binary options offered, falsely stating that their interests were aligned with the interests of customers, and failing to disclose that Yukom was on the opposite side of all customer trades and profited from customer losses. At various times, Peretz has had an ownership interest in Wirestech, WSB and Zolarex, as well as other entities that have received, held or transferred funds on behalf of the Yukom Defendants. Ultimately, the Yukom Defendants fraudulently accepted at least $103 million in customer funds in connection with their binary options trading scheme and misappropriated a significant percentage of those funds by utilizing various manipulative or deceptive devices, including so-called “bonuses” and “risk free” trades, to prevent customers from withdrawing funds, and by artificially manipulating the results of binary options trades to force customer losses.
Defendants Cohen, Herzog, Peretz and Yukom may obtain a copy of the complaint by calling Ms. Pendleton at 1-312-596-0629 or Ms. Streit at 1-312-596-0537; by making such request in writing to Ms. Pendleton or Ms. Streit at the address above, or by visiting the following website on the internet: www.cftc.gov, clicking on News and Events, and typing in Press Release No. 7995-19 (or, alternatively, going directly to CFTC Release No. 7992, dated August 12, 2019, available at the following URL: https://www.cftc.gov/PressRoom/PressReleases/7995-19) and accessing the link to the CFTC complaint.