Tag Archives: district court

US authorities cast wider net in fight against binary options fraudsters

Sourced from: https://financefeeds.com/us-authorities-cast-wider-net-fight-binary-options-fraudsters/

Whereas the start of the trial against Lee Elbaz, the former CEO of Yukom Communications — provider of investor”retention” services for BinaryBook and BigOption, approaches, the amount of criminal cases related to these proceedings continues to grow.

The United States Department of Justice (DOJ) has released an update regarding Lee Elbaz’s case which continues in the Maryland District Court. Two additional associated cases have been registered in the District of Maryland. Both cases are pending before U.S. District Judge Theodore D. Chuang.

You can find at least three other cases related to the lawsuit against Lee Elbaz. Sentencing for defendant Mel was scheduled for June 17, 2019, at 2:00 PM. The situation against her proceeds in the Maryland District Court.
FinanceFeeds has got Court advice about Hadar along with Smith.

Lissa Mel was charged on November 16, 2018 by criminal information with one count of conspiracy to commit wire fraud. She had been formerly charged by complaint on September 13, 2018.
Arraignment was scheduled for March 14, 2019 at 9:30 am.
FinanceFeeds –

Arraignment has been scheduled for March 21, 2019 at 9:00 am.
From in or about November 2014 during or about August 2016, Hadar functioned as a sales agent for BigOption in Yukom.
From in or about August 2015 during or about January 2016, Smith worked as a sales agent or supervised BinaryBook agents at Numaris Communications. The latter was an Israel-based company that supplied sales and advertising services, including retention solutions for BinaryBook. Numaris co-ordinated its work with Yukom. In correspondence and other communications, Smith identified himself as an ‘specialist trader’ along with ‘senior agent ’ for BinaryBook.
The article US authorities cast wider net in fight against binary choices fraudsters appeared initially on FinanceFeeds.
According to the charges, Hadar and Smith conspired to commit offenses against the USA, to wit and cable fraud by way of materially false and fraudulent pretenses, representations and guarantees.  This was the intention behind the conspiracy for Hadar along with Smith and other agents of Yukom, Numaris, BinaryBook, BigOption and other entities to get maximum deposit from investors and to take steps to make certain that investors lost money in their accounts — consequently making cash for themselves and their brands from the procedure.

Lissa Mel is the Israeli citizen who’s alleged to have participated in a conspiracy to commit wire fraud in connection with the sale and advertising of binary choices. The conspiracy concerns two binary choices brands — BinaryBook and BigOption. There are lots of types of misrepresentations made by representatives of these”brokers” to investors, including misrepresentations regarding the suitability of binary choices because investments, as the deceptive use of”bonuses” and misrepresentations regarding the titles, location and qualification of agents”helping” traders. The Government has declared that this conspiracy resulted in more than 80 million in losses .

The criminal complaint from Lissa Mel, aka”Monica Sanders”, alleges she engaged in the conspiracy at least in or around May 2015 through at least May 2016.

Illinois Court nixes attempt by MtGox CEO Mark Karpeles to dismiss action against him

Sourced from: https://financefeeds.com/illinois-court-nixes-attempt-mtgox-ceo-mark-karpeles-dismiss-action/

In denying Karpeles’ motion to dismiss, Judge Gary Feinerman noticed that Greene and Motto’s contacts using the exchange weren’t arbitrary, isolated, or fortuitous, but rather the product of Mt. Gox’s virtual presence in Illinois, as some 7,056, roughly 1.5%, of the addresses associated with Mt. Gox balances originated from Illinois.
The case continues at the Illinois Northern District Court.

Karpeles has moved to dismiss the situation for lack of personal jurisdiction.
The plaintiffs in the case – Gregory Greene and Anthony Motto, seek on behalf of a putative class to maintain Mark Karpeles, Mt. Gox’s chief accountable for financial losses allegedly arising out of the market’s meltdown. The plaintiffs are attracting state law promises that noise in conversion/trespass into chattels, neglect, and fraud. Their complaint stated that Karpeles intentionally resisted the security and stability of the Mt. Gox market and his negligent or deliberate failures in operating and designing the trade enabled the loss of the plaintiffs’ assets. On behalf of a putative class, the plaintiffs seek actual, statutory, and punitive damages, along with prejudgment interest and attorney fees.

Though Karpeles didn’t himself create the alleged misrepresentations into Greene and Motto, it’s enough that he allegedly directed his agents to do this since the representatives had notice that the communications worried Mt. Gox’s business with folks in Illinois. Similarly, that Karpeles didn’t anticipate Mt. Gox to possess tens of thousands of Illinois accounts and didn’t care to determine the source of every deposit or communicating doesn’t deprive the connections together with Greene and Motto in Illinois of the jurisdictional significance.
The Court has found that, even if the Illinois market was”one of many”, an area of no specific interest , Karpeles purposefully availed himself of the market by running a market which created thousands of Illinois balances and by purporting to protect the resources of Greene, Motto, and the other Illinois users.

FinanceFeeds –

The article Illinois Court nixes attempt by MtGox CEO Mark Karpeles to blow off activity against him appeared first on FinanceFeeds.

In sum, since he purposefully availed himself of the Illinois market through his deliberate and constant exploitation of that market, which in turn gave rise to Mt. Gox’s company together and communications to Greene and Motto at Illinois, Karpeles includes a constitutionally sufficient connection with Illinois to justify the exercise of specific jurisdiction.
In keeping with earlier reports, the Illinois Northern District Court has denied a motion to dismiss brought on by Mark Karpeles at a situation regarding the collapse of Bitcoin trade MtGox. The applicable Memorandum Opinion & Order was issued on March 12, 2019.

NY Court reschedules sentencing of Maksim Zaslavskiy in ICO fraud case

Sourced from: https://financefeeds.com/ny-court-reschedules-sentencing-maksim-zaslavskiy-ico-fraud-case/

FinanceFeeds –

Moreover, Zaslavskiy falsely advertised that REcoin experienced a”team of attorneys, professionals, brokers and accountants” who’d invest the proceeds from the REcoin ICO into real estate, that 2.8 million REcoin tokens were sold (just about 1,000 investors paid for REcoin tokens) and the investment from Diamond tokens was”hedged by bodily diamonds.”
“Stripped of the 21st-century jargon,” the court said, referring to Zaslavskiy’s ICO advertising solicitations, the indictment explained a”scam, replete with shared characteristics of many financial frauds.” The court added,”just labeling a investment opportunity since’virtual money’ or’cryptocurrency’ doesn’t transform an investment contract–a collateral –right into a money,” and does not, therefore, eliminate the offerings from the ambit of securities law.

As he confessed at his guilty plea, Zaslavskiy fraudulently marketed RECoin as”The First newly Cryptocurrency Backed by Real Estate,” and subsequently touted Diamond within a”exclusive and tokenized membership pool” hedged by diamonds. In reality, Zaslavskiy purchased neither real estate nor diamonds, along with the certificates he delivered to investors weren’t backed by the promised blockchain technology.

The sentencing, initially scheduled for April 19, 2019, is rescheduled to May 20, 2019.
The post NY Court reschedules sentencing of Maksim Zaslavskiy at ICO fraud case appeared first on FinanceFeeds.

Earlier in 2018, United States District Court Judge Raymond J. Dearie refused Zaslavskiy’s motion to dismiss the indictment. Zaslavskiy claimed the securities legislation did not apply to cryptocurrency offerings. The court declared the validity of the laws, noting that”there can be no serious argument” the indictment was adequate. The court further held that a jury was not able to decide when REcoin and Diamond tokens were all securities. This is based on rulings in similar circumstances.
In addition to this criminal charges, the Securities and Exchange (SEC) has filed civil charges from Zaslavskiy. The civil case was stayed pending resolution of this criminal issue.
The sentencing of Maksim Zaslavskiy, that has pleaded guilty to conspiracy to commit securities fraud in relation to two Initial Coin Offerings (ICOs), has been adjourned. An executive order filed with the New York Eastern District Court on Tuesday, March 12, 2019, grants the petition  issued with the defendant’s counselor about rescheduling the Legislation as a result of personal issues.

Sentencing of Maksim Zaslavskiy may be adjourned

Sourced from: https://financefeeds.com/sentencing-maksim-zaslavskiy-may-adjourned/

As he confessed at his guilty plea, Zaslavskiy fraudulently marketed RECoin as”The First newly Cryptocurrency Backed by Real Estate,” and subsequently touted Diamond within a”exclusive and tokenized membership pool” hedged with diamonds. In fact, Zaslavskiy purchased neither real estate diamonds, along with the certifications he sent to investors weren’t backed by the guaranteed blockchain technology.
“Stripped of the 21st-century jargon,” the court said, referring to Zaslavskiy’s ICO advertising solicitations, ” the indictment explained a”scam, replete with shared characteristics of many financial frauds.” The court added,”just labeling a investment opportunity as’virtual currency’ or’cryptocurrency’ doesn’t change an investment contract–a collateral –right into a currency,” and doesn’t, therefore, remove the offerings out of the ambit of securities law.
On Monday, March 11, 2019, the counselor for Zaslavskiy submitted a request for rescheduling the sentencing due to personal issues. The sentencing in the case is now scheduled for April 19, 2019. The planned new date for the Legislation will be May 20, 2019.

Sentencing of Maksim Zaslavskiy, who has pleaded guilty to conspiracy to commit securities fraud in connection with two Initial Coin Offerings (ICOs), could be adjourned. This is signaled by the most recent filings from the criminal case against him in the New York Eastern District Court.

Before in 2018, United States District Court Judge Raymond J. Dearie denied Zaslavskiy’s motion to dismiss the indictment. Zaslavskiy asserted the securities legislation did not apply to cryptocurrency offerings. The court upheld the validity of these laws, noting that”there can be no serious debate” the indictment was adequate. The court further held that a jury was entitled to determine if REcoin and Diamond tokens were securities. This is based on rulings in similar instances.
FinanceFeeds –

Zaslavskiy faces up to five years’ imprisonment. In addition to the criminal penalties, the Securities and Exchange (SEC) has filed civil charges from Zaslavskiy. The civil case was stayed pending resolution of the criminal issue.

The article Sentencing of Maksim Zaslavskiy could be adjourned appeared first on FinanceFeeds.

Moreover, Zaslavskiy falsely advertised that REcoin experienced a”group of lawyers, professionals, brokers and accountants” who would invest the proceeds from the REcoin ICO into real estate, which 2.8 million REcoin exemptions were sold (just about 1,000 investors compensated for REcoin tokens) and the investment in Diamond tokens was”hedged by actual diamonds.”