Binary Options broker arrested for fraud and extortion after Israel police sting operation

Israeli news outlets are reporting the arrest yesterday of a 38 year old Tel Aviv resident who owned a binary options broker operating from the country.

The police didn’t release many details at this stage yet, stating that the arrest was the result of a covert operation which lasted several months.

The operation began when Israeli authorities were contacted by a woman from abroad who had deposited more than half a million dollars with the brokerage, and who claimed that she was cheated out of her money.

The man arrested will apparently be charged with a variety of offenses including fraud, false registration, forgery, making extortive threats, and blackmail.

The suspect will appear today in Tel Aviv Magistrate Court for a hearing on extending his remand in police custody.

Israeli authorities have vowed to crack down on binary options fraud, particularly when clients from abroad are defrauded by Israel based brokers. New legislation banning the operation of unlicensed binary options brokers from Israel is still in the drafting stages.

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