Yakov Cohen agrees to pay disgorgement of $7M to settle CFTC charges in binary options lawsuit
Yakov Cohen, one of the key figures in the binary options scam evolving around Yukom Communications, has agreed to settle CFTC charges.
Yakov Cohen, one of the key figures in the binary options scam evolving around Yukom Communications, has agreed to settle CFTC charges.
On September 4, 2024, the Commodity Futures Trading Commission (CFTC) filed a motion with the Illinois Northern District Court to approve a consent judgment regarding Cohen.
To effect settlement of all charges alleged in the Complaint against Cohen without a trial on the merits or any further judicial proceedings, Cohen agrees to permanent injunction and to pay disgorgement in the amount of $7 million, representing the gains he received in connection with law violations.
Defendant Yakov Cohen, a/k/a Kobi Cohen, is an Israeli citizen who resided in Israel and Mauritius during the relevant times. At various times, Cohen used the alias “Jay C” when acting on behalf of the Yukom Enterprise. Cohen has never been registered with the CFTC in any capacity.
Beginning on or around March 26, 2014 and continuing through at least September 2017 (the “Relevant Period”), Defendant Cohen, acting individually and in concert with his co-Defendants, operated an illegal and fraudulent “binary options” trading scheme.
In carrying out the fraudulent scheme, the five entity Defendants—Yukom, Linkopia, Wirestech, WSB, and Zolarex—have functioned as a common enterprise (the “Yukom Enterprise”). Cohen owned, operated and controlled each entity comprising the Yukom Enterprise and Cohen, acting alone or in concert with others, formulated, directed, controlled, and/or participated in the acts and practices of the Yukom Enterprise.
During the Relevant Period, Cohen, along with one co-Defendant, co-founded Wirestech and Zolarex, and operated various entities that acted as part of the Yukom Enterprise including Yukom, Linkopia and WSB. Cohen served as the CEO of Linkopia, had an ownership interest in Yukom, and has been one of the primary beneficial owners of the Yukom Enterprise.
The defendants solicited individuals located in the United States and elsewhere to enter into illegal, off-exchange transactions in binary options through various fictitious trade names, including “BinaryBook,” “BigOption,” and “BinaryOnline”. Each of the Yukom Brands is a fictitious entity that was ultimately owned and controlled, at least in part, by Cohen.
Many of the brokers and other employees and agents of the Yukom Enterprise solicited customers and performed work for multiple Yukom Brands, and the brands shared office space, compliance and human resource functions, and accounting services.
On August 12, 2019, the Commodity Futures Trading Commission (CFTC) filed a Complaint against Defendants Yukom Communications Ltd., Linkopia Mauritius Ltd., Wirestech Limited d/b/a BigOption, WSB Investments Limited d/b/a BinaryBook, Zolarex Ltd. d/b/a BinaryOnline, Yakov Cohen, Yossi Herzog, Lee Elbaz, and Shalom Peretz seeking injunctive and other equitable relief, as well as the imposition of civil penalties, for violations of the Commodity Exchange Act, 7 U.S.C. §§ 1–26, and the Commission’s Regulations promulgated thereunder, 17 C.F.R. pts. 1–190 (2023).
All Defendants were properly served, but only Cohen appeared to defend the Commission’s action. The Court has entered defaults pursuant to Fed. R. Civ. P. 55(a) as to all eight of the remaining defendants.
On December 19, 2019, defendant Lee Elbaz was sentenced to a term of imprisonment of 264 months.
Maria Nikolova
Maria has been engaged in journalism for more than 17 years, providing Forex industry coverage for the past 10 years. Before joining FNG she was Managing Editor at FinanceFeeds. Prior to that, she worked at LeapRate. Maria has a Philosophy degree from the St. Kliment Ochridski university in Sofia. She has specialized in Cognitive Science in Vienna. Her interests include psychology, AI, and linguistics.Related Posts
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