A week after its owner Ido Fishman to a hearing in Tel Aviv, former now faces an indictment by authorities in Israel.
Fishman and several of his employees will, pending a hearing, face charges of fraud and providing investment advice without a license.
If they are charged, it will be the first time that any binary options dealers have been prosecuted in Israel. Some individuals have been charged or fined in the past in the Middle Eastern country but those punishments have not been tied specifically to binary options.
According to the state prosecutor, Fishman and his team used high-pressure sales tactics to bully clients into handing them cash.
“[iTrader employees] used aggressive and fraudulent sales tactics, deceptive practices and the hiding of crucial information from clients,” said the prosecutor in a statement.
At home and abroad
The charges against Fishman appear to stem from his activity inside Israel.
Via a holding company called Gal Media Trade, Fishman operated two large binary options brokers. iTrader targeted clients within Israel, while FMTrader was aimed at traders outside of the country.
Fishman has had several previous run-ins with the law.
Back in 2016, iTrader’s office was raided by police and several of the broker’s employees were arrested.
Several ex-Gal Media Trade employees were also in June of last year for allegedly running a boiler room scam.