Key Figure in Israeli Scam Ecosystem Under Scrutiny
Moshe Strugano, a 50-year-old lawyer from Israel, is under investigation by UK authorities for his alleged involvement in large-scale binary options fraud schemes. Strugano is known for his legal support of several fraudulent operations, including the infamous Yukom binary options network. The binary options space, long plagued by fraud, has seen individuals like Yossi Herzog, Kobi Cohen, Lee Elbaz, and David Cartu operate numerous scams, resulting in massive financial losses for tens of thousands of retail investors.
The success of these fraudulent schemes was greatly enabled by lawyers who provided legitimizing legal documentation—Strugano among the most prominent.
Yukom Case and Lee Elbaz Conviction
In the United States, Lee Elbaz, the former CEO of Israel-based Yukom Communications Ltd—linked to Yossi Herzog and Kobi Cohen—was sentenced to 24 years in prison and ordered to pay $28 million in restitution. Yukom managed fraudulent brands such as BinaryBook, BigOption, and BinaryOnline.
Strugano, allegedly complicit through his legal endorsements, was arrested in London in early 2019 and subsequently released on bail. His legal opinions reportedly validated the schemes’ compliance with international KYC (Know Your Customer) and AML (Anti-Money Laundering) laws, though these claims now face serious scrutiny.
Legal Shield for Fraud?
According to the Financial Times, UK regulators are pursuing actions against Strugano due to his ties to Yukom. His arrest appears to have been the first step in a broader probe. Investigators believe that without the appearance of legal legitimacy provided by Strugano’s work, many of the scams would not have been executed at such scale.
In a 2019 post on the Steemit platform, Strugano—or someone affiliated with him—asserted that he was helping bolster Elbaz’s legal defense. This effort proved unsuccessful, as U.S. prosecutors secured her conviction with detailed evidence of widespread fraud within Yukom’s operations.
Meanwhile, the U.S. Commodity Futures Trading Commission (CFTC) has filed a separate fraud complaint against Elbaz, Herzog, Cohen, and others. Elbaz remains in prison, and Herzog is reportedly evading authorities.
Legal Opinions Under Fire
It is now clear that legal opinions provided by Strugano and several other Israeli attorneys were deeply flawed. Basic due diligence on KYC/AML/CTF procedures was either insufficient or entirely absent. Nevertheless, Strugano allegedly earned millions in legal fees while facilitating illegal financial operations.
Read more on the CFTC complaint
Beyond Yukom: Cartu Brothers and GMM
Strugano’s involvement extended beyond Yukom. He also worked with David Cartu, a Canadian-Israeli national behind numerous binary options frauds linked to GreyMountain Management Ltd (GMM), an Irish-registered entity.
David Cartu, along with his brothers Jonathan Cartu and Joshua Cartu, is facing legal action from the Ontario Securities Commission (OSC) for orchestrating large-scale scams through GMM. These schemes reportedly extracted over $165 million from unsuspecting investors.
Tradorax, 23Traders, and Tragedy
Strugano has been associated with several high-profile scam operations, including Tradorax and 23Traders. One of the most tragic consequences tied to these frauds is the reported suicide of Canadian investor Fred Turbide in 2016. He had lost more than CAD 300,000 (USD 229,060) through 23Traders, a scheme that had already received multiple warnings from financial regulators around the globe.
Legal Consequences on the Horizon
Despite his likely defense that he was merely executing his professional duties, Strugano’s role in issuing legal approvals for scam operations is now under active investigation by both U.S. and UK authorities. The mounting pressure signals a possible reckoning not just for scammers, but also for those professionals who enabled them under the guise of legal compliance.
This development is a positive sign for the many victims seeking justice and restitution after falling prey to binary options fraud.
Further reading on Moshe Strugano and related investigations available via Scam-Or Project.