Photo: FM, Binary options have been a popular tool for defrauding investors Share this article Finance Magnates Telegram Channel A French-Israeli man linked to a high-profile binary options fraud scheme is under police custody in Israel for defrauding French citizens, most of them were elderly, in a follow-up scam.
Israeli news sources reported that Ilan Abraham Marco, who immigrated from France ten years ago, has been arrested for a diverse list of charges. Namely, he allegedly impersonated French police officers and tax inspectors to approach victims of binary options fraud and claimed that, for a fee, he can help them recover the sums invested or the losses incurred on unlawful trading platforms.
Marco, who also goes by the name Ilan Marko, claims that the source of his money was an inheritance and that most of these funds had been included in his statements to the Israeli Tax Authority. The caller sounded official, spoke aggressively and demanded immediate payment and sometimes he threatened — pay up now or face arrest or some other serious consequence.
In some cases, he told victims that the money they lost had been seized from the crooks and that they would be able to get it back, but only after paying tax. Victims, usually desperate to recoup their losses, paid the upfront fees, which were anywhere from several hundred to thousands of euros, putting them in a bigger financial hole.
The arrest, which police said came after the undercover investigation that had lasted months, is the last since Israel authorities announced a crackdown on the binary options industry. Israeli police are still investigating how Marko, whose criminal record in France includes money laundering and tax offences, got the names and contact information of binary options victims.
But, scam artists often buy and sell lists of previous victims so that they can call them promising to recover the money that they lost or profits they never received.
As alleged in the complaint, the defendants have solicited individuals located throughout the U. The complaint further charges that the defendants have falsely stated that the binary options offered by the five defendant entities are actual transactions subject to objective market conditions when, in fact, they are mere book entries whose outcomes can and have been manipulated to force customer losses. The complaint also alleges that the defendants falsely state that the interests of the defendant entities are aligned with the interests of customers, when in fact the entities are on the opposite side of each binary option trade and therefore profit from customer losses.
Although some government agencies could help people who have lost money, they do not charge a fee, guarantee money back, or give special preference to anyone who files a formal complaint. These recovery scams are binary options israel defrauding the victims one more time, and according to French authorities, they use a variety of lies to add credibility to their pitch.
Simona Weinglass is an investigative reporter at The Times of Israel. Shabtay Yaacobi Facebook screenshot An Israeli judge in a civil case has found that an Israeli binary options operative systematically defrauded his victims, impersonating a broker named Zack Peterson and refusing to let them withdraw their money. The judgment is the first time an Israeli judge has described a binary options company as fraudulent and ruled entirely in favor of overseas victims, potentially paving the way for a slew of lawsuits in which alleged victims could get their money back. Get The Times of Israel's Daily Edition by email and never miss our top stories Free Sign Up Israeli prosecutors have yet to indict a single binary options suspect on criminal charges of fraud, while the United States has indicted about two dozen Israelis and taken civil enforcement actions against many others.
In addition, once the victim shows interest, a series of official-looking documents are sent to assure the investor that money is waiting in binary options israel account and can be recovered for a fee.
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