Background: Yukom Communications and Global Investor Losses
U.S. authorities have attributed more than $140 million in damages to the Yukom Communications binary options fraud scheme, which targeted tens of thousands of investors globally. At the center of this network were Yossi Herzog and Kobi Cohen, identified as the beneficial owners behind the scam. Their extravagant lifestyles, funded by stolen funds, have come under intense scrutiny.
Legal Consequences Already in Motion
The CEO of Yukom, Israeli national Lee Elbaz, has been convicted by a U.S. jury for her role in the fraud. In addition to her conviction:
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Five Yukom employees have already pleaded guilty.
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Two of them have been sentenced to prison and ordered to pay significant financial penalties.
Herzog and Cohen: The Lavish Profiteers
A report by William Turvill and Melanie Newman, published via ThisIsMoney, provides insight into how Herzog and Cohen flaunted their ill-gotten gains.
Yossi Herzog
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Appears in a video bragging to Yukom employees about the millions he earned.
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Described as an influential figurehead behind Yukom’s operation.
Kobi Cohen
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Allegedly owns a luxurious villa on Mauritius’s scenic west coast.
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Frequently seen driving a white Range Rover Sport.
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Known for wearing high-end accessories, including a Rolex.
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Has been photographed inside London’s Ritz Club Casino.
Not Just Yukom: The Case of Gal Barak
Israeli scammer Gal Barak, also known as the “Wolf of Sofia,” operated a mirror-image fraud structure through E&G Bulgaria, which closely resembled Yukom in scope and deception.
Gal Barak’s Associated Brands:
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XTraderFX
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SafeMarkets
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OptionStarsGlobal
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Golden Markets
Barak’s operations enabled him to amass a fortune, used to acquire:
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Luxury real estate
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Gucci-branded timepieces
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High-end vehicles, including Porsches
Summary Table: Key Figures and Assets
|
Name |
Role |
Associated Entities |
Assets Acquired |
|
Yossi Herzog |
Beneficial Owner (Yukom) |
Yukom Communications |
Multi-million net worth, luxury bragging |
|
Kobi Cohen |
Beneficial Owner (Yukom) |
Yukom Communications |
Villa in Mauritius, Range Rover, Rolex |
|
Gal Barak |
Owner (E&G Bulgaria) |
XTraderFX, SafeMarkets, etc. |
Porsches, real estate, Gucci watches |
Conclusion: Luxury at a Cost
While Herzog, Cohen, and Barak indulged in high-end lifestyles, their fortunes were built on deceit, affecting tens of thousands of retail investors worldwide. The legal proceedings against these fraudsters mark an important step in holding perpetrators accountable—but the broader financial ecosystem that enabled them still requires international scrutiny.